ABM + ezyCollect: Ajendico’s 3-step plan for accounts receivable efficiency

ABM + ezyCollect: Ajendico’s 3-step plan for accounts receivable efficiency

Di Peters, Ajendico

Di Peters is the Managing Director at Ajendico Pty Ltd, Australia’s leading Advanced Business Manager (ABM) Software Channel Partner.

Di has been helping small & medium business owners for the past 27 years. As an ERP advisor, she specialises in optimising and systemising increasingly complex business processes. “Even successful businesses encounter problems. With the right technology, you can transform a problem area into a long-term asset,” says Di. Cashflow-generating functions should be optimised, making accounts receivable efficiency a prime target.

Key points

  • The right technology can create lasting improvements to your business processes.

  • Cash recovery is a common pain point across many industries.

  • Ajendico integrated ezyCollect with ABM to extend their accounts receivable efficiency and capabilities.

  • An automated and organised accounts receivable process saves time and speeds up the cash recovery rate.

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Di uses a simple 3-step process to help business owners identify areas for business improvement:

Step one: Uncover the pain points

First, identify the processes that are not working for your business. Look for areas where you are putting in the time and effort but not getting results. Which pieces of information are you missing but really need in order to make good decisions? Where are you wasting resources and raw materials? 

The pain points in your business can cause headaches for you and your team. Even worse, they could also be affecting your customers. 

Step two: Assess your current capabilities

Deep dive into your current systems to make sure you are utilizing them to their full capacity. Identify where your current systems do not meet your evolving needs. Consider your people and the job they need to get done. This will help you to create the scope for the solution that will extend your team’s capabilities. 

Step three: Find the best technology 

The key to sustainable improvements is to implement the best technology available. Assess a technology solution for the following:

  • the feature set
  • usability and user interface
  • cost and return on investment
  • customer support provided
  • ease of integration with your existing systems

Read user reviews. Ask your ERP advisor to recommend applications that are best of breed.

Pain point: Cash recovery 

“The biggest roadblock in growing any successful business is cashflow. If our  clients can’t get dollars back in their bank account it impacts their working capital and growth,” advises Di.

And Ajendico’s clients—including manufacturers, e-commerce businesses and importers—want to be market leaders.  

“Our team can add value to these ambitious businesses by helping them to get paid first.”

Current accounts receivable capability: Advanced Business Manager

At its core, ABM is logical and easy to use. The ABM Core Accounting System is designed to fulfill the needs of modern businesses, and once implemented, quickly streamlines business processes.

Di’s clients use the automated credit control functionality in the core ABM system to keep control of customer credit limits. It’s easy to see outstanding debts by invoice due date as well as send an email reminder to overdue customers after the due date has passed.

Whilst the day-to-day processes work well, Di identifies an opportunity for time-poor businesses that end up with too many overdue invoices each month.

“These businesses need a cost-effective plan in place to follow up customers who don’t respond to existing internal processes.”

Four key accounts receivable improvements with ezyCollect

The integration of ABM and ezyCollect takes a previously manual process to “another level”, says Di.

1. Get paid early with a due soon reminder

Once the invoice is entered in ABM and the due date is known, you can start automating a schedule of reminders starting before the payment due date.

“This first improvement means less work chasing overdue accounts as your new system improves the percentage of invoices paid on or before the due date,” says Di.

2. Save time with an automated and escalating workflow 

If your customer has not paid the invoice, instead of sending just one overdue invoice email from ABM, ezyCollect provides you with a schedule of scripted collection tasks that include emails and phone calls. Your workflow can also include the final step of handing the debt over to a collection agency, a step that always remains in your control.

A strict workflow results in disciplined cash recovery

3. Be easy to pay online

Di also recommends the online payment capability of ezyCollect to her clients.

“Your reminder and invoice can include a Pay Now button, making it simpler for your client to pay you with their credit card as soon as the email is received. And your business now looks far more professional to your customers,” advises Di.

4. Generate more business with Pay Later

Going further, ezyCollect offers your customers an additional payment method: Pay Later.

“Within their payment portal, your customers can take up a payment plan with a finance provider. It means you get paid today while your customer pays back the amount they owe in instalments.”

The Pay Later function is good for your own cashflow, and it also helps your credit-worthy buyers to regulate their own cashflow.

Is ezyCollect right for your ABM-run business?

Di understands that users of ABM like how customisable it is. “Tailoring ABM to suit their internal business processes gives them a competitive advantage,” says Di.

To see if ezyCollect could benefit your business, Di recommends this:

  1. Run your Trade Debtors report and write down the Total Due

  2. Now write down the Total of the Current column underneath

  3. Deduct the Current column from the Total Due

This is the amount of money that could potentially be in your bank account right now.

Are you missing out?

Di’s final word:

Every business can benefit from extra cash in the bank. Making your accounts receivable process more efficient has tangible benefits to your business  like time savings and working capital you can rely on. What’s more, you also give your customers a better payments experience which supports your relationships. 

ABM users can trial ezyCollect free for 14 days:

New Integration: Advanced Business Manager (ABM) Software

New Integration: Advanced Business Manager (ABM) Software

ezyCollect’s accounts receivable platform now integrates with Advanced Business Manager (ABM). Users of ABM’s financial management software can now power up payment success with next level credit control and collections capacity.

Business operators using Advanced Business Manager already know this: getting paid on time is a critical indicator of business health. Businesses that carry the burden of overdue accounts receivable typically exhibit three big pain points:

  • Cashflow deficit for working capital and growth.
  • Time deficit as crucial staff hours are lost to chasing customers for payment.
  • Relationship deficit as customer relations deteriorate over poor payment behaviour.

Chris Heysen is Advanced Business Manager’s CEO and is enthusiastic about helping businesses grow from good to great.

“We know the Advanced Business Manager client is focussed on growing a great business and doesn’t have time to waste on inefficient processes. ezyCollect’s solution for late payments will help businesses to achieve both revenue and efficiency goals,” says Chris.

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How late payments kill business

The debt burden on small-to-medium enterprises (SMEs) is huge. The first ever Australian Payments Times and Practices Inquiry of 2017 found the following:

  • 1 in 5 businesses were paid more than 60 days late.
  • Two thirds of businesses say late payments reduce business profitability.
  • 1 in 2 businesses find it hard to pay their own suppliers if they are not paid on time.

The Australian Small Business and Family Enterprise Ombudsman was particularly critical of big buyers, urging them to be more transparent about their payment times and to stop using small business suppliers as cheap forms of finance.

Aj Singh

ezyCollect’s CEO, Aj Singh, founded ezyCollect after experiencing the pain of late payments firsthand. “I was running a medical supplies business.We had a huge cashflow problem behind the scenes even though the business was generating a lot of new sales. We kept supplying late payers because we couldn’t keep track of their credit usage. We had this ballooning cashflow gap. We started hiring people to chase payments but adding headcount is very expensive.

“We nearly lost that business to late payments.”

Now, ezyCollect exists to serve other wholesalers, manufacturers, and business services. “If you’re selling goods or services on credit, a late payments problem is looming just around the corner unless you have a disciplined accounts receivable process in place,” advises Aj.

A disciplined and efficient accounts receivable process

ezyCollect is purpose-built to give growing businesses an efficient accounts receivable process that grows with them. 

“Growing businesses need more than payment reminders to get paid faster. There’s actually a lot of factors that need to be optimised to protect your business from credit risks and to recover money faster,” says Aj.

Luckily, ezyCollect’s platform cleverly integrates all of those critical factors into one easy-to-use hub. The good news for ABM users: ezyCollect seamlessly integrates with Advanced Business Manager to use the invoice data already created in the accounting software, avoiding any duplicate data entry. 

Save time with personalised automation

Automate the manual tasks and create time for critical jobs:

  • Set up a schedule of automated invoice reminders by email, sms, and letter. 
  • Customise best practice communication templates with your language and tone.
  • Automate ‘due soon’ reminders to prompt early payment.
  • Set rules for which customers get reminders and which ones don’t.
  • Automatically include invoice copies and a summary of all overdue amounts.
  • Automate monthly statements.
  • Generate automatic ‘thank you for payment’ messages.
A sample automated sequence of payment reminders

Simplify the day

Remove the mess and guesswork and just get the job done:

  • ezyCollect emails you a priority list of daily collection calls to make.
  • Log any notes in the debtor database alongside the audit trail of automated communications – your team will always have up-to-date information on every customer’s status.
  • Click to send a demand letter.
  • Click to refer an overdue customer to a debt collection agency (ezyCollect automatically sends the agency the invoice details and summary of your collection attempts.)
  • Click to order a same-day business credit check report.

Surface ageing invoices easily

Never lose sight of ageing invoices with high visibility of the entire AR ledger:

  • Your new AR source of truth is automatically created after ezyCollect syncs with your ABM software.
  • See a real-time distribution of your ageing invoices.
  • Quickly identify the customers in your danger zone of defaulting.
  • Dig deep into every debtor’s account history.

ezyCollect dashboard

Get paid online 24/7

Offer customers a payment portal for self-serve credit card checkout:

  • Add Pay Now buttons to your invoices and reminders.
  • Customers click to complete a simple credit card checkout seamlessly.
  • Every customer gets a payment portal housing all open invoices and their transaction history.
  • Customers can choose a buy now pay later option available via a third party finance provider.
Customer payment portal in ezyCollect

Quick no-cost installation in under 5 minutes

As a SaaS product, ezyCollect integrates easily with ABM’s cloud accounting software. Once you register your file with ezyCollect, ezyCollect will send you a simple process to follow. Your data syncs with ezyCollect in around five minutes for instant mapping and tracking of your accounts receivable ledger.

ezyCollect also provides complimentary training for your team so setup is fast and you’re operating with confidence.

Which industries will benefit most from ABM + ezyCollect?

Chris Heysen sees ezyCollect as having wide application for ABM users across all industries, in particular:

  • Wholesale and Distribution
  • Construction
  • Manufacturing
  • Field Service Technicians
  • Consultants

“Consider trialling ezyCollect with ABM if you’re issuing goods or services on credit, and then experience a time and cashflow challenge in recovering money. A tech solution can help you quickly clean up an untidy process. Plus the ROI is obvious as the payments come in,” says Chris.

ezyCollect offers Advanced Business Manager users a free 14-day trial.