Checks coming in is always a good thing, right? Collection law firms especially know the answer can be yes and sometimes even no. Relying on consistent incoming payments as part of your revenue can make things extremely stressful especially when the way payments are being processed becomes a tedious and laborious part of your job. What if we told you that advances in technology could significantly cut down the time it takes you to scan, file, store, and report payments?
Here are 4 ways automating your accounts receivable processes can benefit your legal collection firm:
Since it takes months or even years for legal collection firms to receive debts owed, why rely on manual remittance processes that take too long and create too many errors? Automating manual processes may greatly reduce the time it takes your business to apply payments to your various software applications. With fewer human errors, faster data entry, and immediate processing and posting payments, automating check processing can improve productivity by as much as 70%.
Reduce human error
Manually entering information costs your business time, and manually entering wrong information can cost your business even more. Payment processors can find themselves manually entering payment information into multiple software applications, which, if done by hand, increases the risk for error each time. These mistakes can result in underpaying clients, overbilling debtors, and even more hours spent correcting the errors. With the right accounts receivable software, your business may be able to significantly decrease human error - reducing the time it takes to apply payments while increasing staff productivity.
Efficient exception payments
90% of all work involved with processing checks is caused by exception payments. Receiving multiple checks for one bill, one check for multiple bills, receiving too little or too high payment, or checks without stubs can become tedious to research and post to the appropriate accounts. With the right technology, you are able to quickly identify which outstanding invoices the check was meant to pay and automatically post the payment to the right invoices and/or accounts. Saving your team the time it takes to research and manually apply payments.
One of the biggest issues with processing incoming checks is the lack of integration between software applications. Having the ability to integrate your existing software to automatically post payments and update accounts can significantly reduce time and money for you firm.
Automating your accounts receivable solution can streamline the laborious steps involved in processing payments. Increase productivity by reallocating the time it takes your staff to apply payments. Contact us today
for a quick discussion to discover how many hours you could be saving on your payment processing.