An increase in cash flow is undoubtedly beneficial for every organization. More cash in the bank offers more options to grow your firm by adding more staff, increasing operations, and investing in fresh goods and services. The challenge is to boost the efficiency of your cash flow to have the freedom to invest.
From the first invoice to the last payment, e collect account helps businesses worldwide manage receivables and cash flow using a digital-first strategy. It creates a customized customer journey based on the individuals’ circumstances, surroundings, and demographics. Making cash management as effective and automated as possible while reducing friction for the end user allows customers to concentrate more on their businesses and less on accounts receivable.
Continue reading and learn more about the E collect account, how it is helpful and how you can streamline cash flow with an E collect account.
What is an E Collect account?
As the name suggests, e collect accounts allow you to collect your dues online or electronically. E collect accounts make it easier to identify the specifics of collections collected via RTGS and NEFT. In addition, you can utilize customized MIS credits received through RTGS and NEFT from your dealers and other business partners by using an e collect account.
You can quickly and easily create an E collect account online. Furthermore, you can manage and keep track of the collection procedure and any payments made on your claims using your E collect account.
Features of an E collect account
* Promotes quick and easy access to finances online
* Offers tailored Management Information System (MIS) for a speedy reconciliation
* Provides payers with payment confirmation
* Offers validation and MIS reporting at the hierarchy or structure level
How can you streamline cashflow?
Taking proactive measures to manage your account receivables is one of the best ways to create a smooth cash flow for your company. Since the economy is already weak, revenues are down, and COVID-19’s effects are still being felt, doing so is more crucial than ever. You can take the following steps to ensure the smooth operation of your business:
1. Analyze the credit terms
Credit terms are typically established as payable immediately or over a period, such as net 15 or 30. Longer credit terms may improve your relationship with your customer, but they could also impact your cashflow. Consider aspects of each customer and their payment history.
2. Send invoices quickly
It is crucial to send your invoice immediately because it can take your customer some time to complete payment. Additionally, many accounts payable departments usually process payments monthly or biweekly.
3. Keep an eye on the amount owed
You can take swift action if a payment is late by checking your account receivable. For instance, the payment misplaced in the mail can be a basic error. It is also a sign of a recurring pattern; in this case, you may have to choose between imposing stronger credit restrictions or terminating the business connection completely.
4. Automate accounts payable process
When manually tracking the payments, the possibility of missing out on a few payments is higher, along with added effort. The process of keeping track of your accounts receivable can be automated using various programs. These applications simplify creating and sending invoices, which can also notify you of due dates and missed payments.
Benefits of E collect account
- Emphasizes on the client experience throughout the complete collection process and assures higher Daily Sales Outstanding (DSO)
- Maintains client relations to ensure quick collections with accuracy and timely invoicing
- Reduces the workload on your invoicing and collection staff with automation and enhanced bulk invoicing that includes comprehensive and current facts
- Make plans for any financial gaps by analyzing past data and looking for trends in slower collections
- Data and information are shared between all parties more quickly and easily
- Become proactive with your cash flow planning with the use of analytics and insights, to reduce difficulties
By now, we hope you understand the significance of e collect account. EnKash is a spend management platform enabling end users to pay their invoices and fees easily. The users can directly pay from their bank account with minimal friction from wherever they are, just by clicking a link or scanning a QR code. In addition, EnKash’s e collect account helps you minimize the risks involved in manual data entry and remove redirects, hence, maximizing payment completion. So, what are you waiting for? Visit EnKash’s website today and explore an array of fintech solutions for your business!