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Article: Are You Tracking Accounts Receivables?

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EBPP and Collections

Even before a bill is initially created, all of the relevant data has usually already been entered into your accounting system. NextBill’s EBPP service allows companies to use that data to create not just the invoice, but it allows the customer to incorporate the data in the original invoice into the payment without needing to re-enter it from scratch. Further, once you receive payment, the original data used to create the invoice is used to post the payment. The result is that it is now possible for a company to send invoices directly out of its accounting system and deliver them electronically. On the other end, a customer can make an electronic payment on that invoice or schedule a payment for a future date and download the transaction data automatically into their accounting system.

In addition to enabling companies to streamline the issuance and receipt of invoices and payments, NextBill’s EBPP service supports routing invoices and payments electronically to the correct approving authorities and mediates disputes, which may arise. The result is a product that companies can use to make the entire payment cycle operate more smoothly with less paper and friction than ever before.

Improve Information Flow
When an invoice is sent via NextBill, the buyer receives it moments after it is sent and can address any problems immediately while the invoice is still fresh in the minds of each side of the transaction. Using the built-in discussion feature, the buyer can work online with the seller to iron out any differences.

Faster Response to Late Payers
When a payment is sent electronically, NextBill generates an email notice immediately with all of the pertinent payment data, including amount and date of payment. Each biller, including those in a “Service Provider” environment, must establish their late payment notification/reminder policies. A biller may choose to remind customers of their payment obligation a certain number of days before the due date, or they may choose to send overdue notices after a time period has elapsed after the due date. A biller may also assess a late charge automatically or simply display a warning message the next time that the customer accesses the web site. Late payments can be addressed before they are even one day late. Being aware of payment problems sooner makes collection efforts easier and actually helps to reduce the number of accounts that actually have to be written off.

Collection Benefits Reviewed
NextBill’s service can make a positive impact on your collection efforts. When payments are made electronically, either in advance or just in time to meet the payment due date, you receive notice of the payment. Further, you have a record of every payment scheduled and the status of those payments. By knowing which accounts already have a payment scheduled, your collections staff can focus on those customers who are late. Not only is it more efficient, but it also avoids irritating those customers who have already paid. Another benefit is that should an electronic payment be dishonored by the paying bank (i.e.: NSF, Account Blocked or other reason), notice is usually received within 3-4 business days of the payment being made. Compare that with the 10-business day delay sometimes seen with dishonored paper check payments. Again, faster notice gives your collections staff the opportunity to address payment problems sooner, which will result in more successful collection efforts.

NextBill allows bills to be resent electronically. Should a customer claim that the invoice was lost an electronic invoice can be resent immediately. That means the payer can attend to it while still on the phone with your Accounts Receivables staff. Again, the faster the problem can be addressed the sooner payment can be received.

There are times when the customer has a legitimate concern about a bill. NextBill allows online discussion of invoices to resolve problems as early in the billing cycle as possible. NextBill offers a Java-based chat component as a support option. The Java-based chat program is a proprietary chat component that allows customer to communicate in real-time with administrators or other users to pose questions or seek support. Should there be any questions down the road, there is a clear audit trail showing what was agreed to by each side. Further, the discussion can be routed to appropriate individuals within your organization to determine the best resolution and those internal discussions are not made available to the customer.

NextBill allows companies to set up a wide variety of permissions on our system. This makes it possible for a collections agent, for example, to view payment or invoice history in working out late payments.

Regardless of whether your customers use recurring payments or schedule payments as each bill is received, you benefit by knowing when funds are due to arrive. No more “check is in the mail” excuses. Anyone who has not scheduled a payment on time can be contacted to find out why.