In a business, ensuring that outstanding debtor dues are cleared on time is a challenging task. A company has to follow up with debtors regularly, and keeping track of which customers have paid their dues on time is a long process. To help ease out this task, CredFlow steps into the picture.
What is CredFlow?
CredFlow is an outstanding payments management application that ensures that debtors pay their dues on time. CredFlow leverages automation capabilities, and its objective is to help eliminate a business’s dependence on collection managers.
In this blog post, we’ve written about the benefits of using CredFlow to manage debtors and payments and ensure proper cash flow management in your company. Read on to know more about these benefits.
Benefits of using CredFlow to manage debtors and payments
Here are the 8 benefits of using CredFlow to manage debtors and payments in your business:
- Helps analyse debtor-related metrics
CredFlow helps analyse data like the average debtor collection period and projected cash flows.
Average debtor collection period: The average debtor collection period refers to the average period of time a business takes to collect a sum of money owed to it by its trade debtors. As an outstanding management application, CredFlow shows the debtor collection period. If the debtor collection period is too high, it indicates that the business needs to ensure its business payment terms are followed by customers, and necessary corrective steps must be taken to ensure outstanding dues are paid. The average debtor collection period is calculated using this formula: Average balance of accounts receivable/ Annual sales on credit* 100.
Projected cash flows: Projected cash flows refer to an estimate of a company’s future financial position and includes cash inflows and outflows. Moreover, artificial intelligence helps predict account receivables which help businesses plan their finances better.
Helps with the auto allocation of payments and payment reminders
CredFlow helps businesses with the auto allocation of payments to invoices and ensures the prompt sending of payment reminders to debtors.
Automated payment reminders: In a business, one needs to follow up with clients regularly to clear outstanding payments. CredFlow helps send automated payment reminders to debtors and ensures auto-sharing of invoices. This saves the time and effort required to follow up with debtors.
Ensures auto allocation of payments to invoices: With CredFlow, you can ensure the auto allocation of payments to invoices and track the amount outstanding and the debtor’s name according to the invoice number.
Help create incentive schemes for debtors for early payment
It becomes challenging to ensure that your debtors are paying your dues on time. With CredFlow, you can ensure auto-sharing of invoices, create incentive schemes for debtors and offer them a discount if they clear your dues within the due date. You can set the discount percentage you wish to offer to your clients according to how early the client pays outstanding dues. Moreover, you can choose the frequency of payment reminders, i.e., how often you wish to send a reminder to your client to pay the outstanding amount.
Helps in creating business reports
CredFlow helps in creating multiple business reports like sales trends and collection trend reports. They help businesses make better decisions about whether they need to follow up more with debtors, create stricter payment terms, etc.
Ensures better credit control
CredFlow helps with credit control by detecting any potential bad debtors in the business. There is an overdue period threshold that you can set in the application. When the amount outstanding by a debtor exceeds this threshold, the debtor’s amount will be written off as a bad debt. Then, the credit will not be extended to any defaulting customer. This safeguards the company from future monetary losses that may arise if credit is extended to a defaulting client.
Helps send bulk messages to debtors
CredFlow helps send bulk messages to debtors regarding any amount overdue, payment terms and conditions, etc. In the absence of CredFlow, the company would have to send an individual message to each debtor, which would have been a long, time-consuming process. CredFlow can also help you create a customizable Excel sheet of all your contacts, which helps businesses view information about their customers in a single place.
Reduces dependence on the firm’s accounting team
CredFlow helps reduce dependence on a firm’s accounting team. With CredFlow, the accounting team will be able to focus on the company’s internal work related to storing and updating the firm’s financial information, like balance sheets, income statements, profit and loss accounts, and so on because the task of sending automated payment reminders will be completed through CredFlow’s application. This saves crucial business time that businesses would otherwise spend on following up with debtors regarding payments.
Integrates with Tally ERP 9
CredFlow enables integration with Tally ERP 9 and acts as an automated collection engine for tally users. Admins can access client companies through Tally ERP 9’s portal. Clicking on the ‘’add company’’ button in Tally ERP 9 will help firms sync data. Syncing the data saves time and effort that would have been needed to add the list of companies in CredFlow manually.
We hope that now you know how CredFlow can help you manage debtors, payments and ensure better cash flow management in your business. Opt for CredFlow if you wish to organise your debtor collection processes better.