Collections

Collections is the process of pursuing payment for outstanding invoices from customers. It is crucial for maintaining healthy cash flow and ensuring that businesses are paid for the products or services they provide. The collections process typically involves contacting customers via phone, email, or automated reminders to encourage prompt payment.

Effective collections reduce the risk of overdue payments and help businesses meet financial obligations. Automation of collections processes through AR systems streamlines reminders and follow-ups, reducing manual effort. AI-powered solutions can prioritize high-risk accounts and predict the best time for follow-up, improving recovery rates.

By optimizing collections, businesses can significantly reduce DSO and improve liquidity.