Collecting Receivables Is a Team Effort, and Fully Utilizing Microsoft Dynamics GP Can Pay Big Dividends

Every so often I've had enough and it's time to sit down and have a straight talk. This isn't quite an intervention, but it's getting there. Whether the recession is really over or not, it still feels like a recession out there.  So why are companies still doing stupid things with receivables and collections?  There, I've said it.

I'm not talking about Dynamics GP yet, we'll get there. It's time to take responsibility first.

I spend a lot of time in mid-size companies, where receivables and collections always seem to be an issue. I think it's related to the size and relative maturity of mid-size firms.

Larger firms can dedicate folks to collections. In mid-size companies the job is often shared among many people. Most people don't like confrontation and when it's only part of their job, it's the part that gets done the least, and last.

Stupid is a strong word, but it's time to get your attention. These are some of the things I see that companies should stop doing:

Stop dividing up the job. Dedicate at least one person full time to collecting money from your customers. Dedicated collectors learn who to talk to, who delivers on their promises, and how to get money out of those who are slow to pay.

Stop splitting up customers. Assigning more than one person to collect from a customer is a great way to not get paid. Customers will be confused, requests for copies will get dropped, and generally, the organization looks sloppy. Additionally, not dedicating one collector per customer makes it almost impossible to gauge the effectiveness of a particular collector.

Dynamics GP's Collections module is geared toward one collector ...