Saving time and money is a significant goal for any business. However, it is even more crucial for collections agencies. The industry is growing faster than ever before. In fact, it is booming. That means there is also a significant amount of new competition. Collections agencies are popping up on every corner. They are competing for your accounts. To grow your business, it is necessary to lower the fee structure without decreasing the profit margin. That is certainly far easier said than done – a payment solution from a specialist like Payment Savvy will further stretch your company’s dollar.
There are some obvious actions you can take to improve the bottom line. Getting paid faster and more efficiently should be at the top of your list. Collections agencies that are entering and reconciling payments manually are wasting valuable time and money. You cannot afford to squander either of those useful commodities. Furthermore, manual systems required even more time and effort to fix data entry errors. The information must be corrected in the payment system, debt collection system, and accounting system.
This causes triple the amount of work, takes triple the amount of time, and costs triple the amount of money in person-hours. However, there is some good news. A fully integrated payment processing solution automates the entire process. It enables all of the software systems to work together. In turn, the whole process becomes far more efficient. Automation pays for itself tenfold shortly after implementation. The following examples explain the actual impact a fully integrated payment solution can have on your business.
A great deal of collections agencies continue to use manual systems to process payments and handle accounting tasks. The manual process requires people to physically enter a bunch of information into the system every time a debtor pays in person or online. It is a time-consuming process. Here is how it works in a practical application.
Your company is still using a manual system. The agency processes a low volume of payment transactions per day. We will use a total of twenty-five (25) for this example. It takes an employee three minutes to enter the purchase data information into the accounting system. That equals 1.25 person-hours per day, 6.25 person-hours per week, 31.25 person-hours per month, and 375 person-hours per year. It certainly adds up quickly. If the employee is being paid $20 per hour, it equals a payroll expenditure of $7,500 per year to enter data into the system. It does not make financial sense. A fully automated payment solution eliminates the need to enter payment transaction data into the debt collection software system. Data entry is done automatically. By automating, you have saved a great deal of time, and time equals money.
Your company is still using a manual system. The business processes a high volume of payment transactions per day. We will use a total of one hundred and fifty (150) for this example. It takes an employee the same three minutes to enter the payment data information into the debt collection software system. That equals 7.5 person-hours per day, 37.5 person-hours per week, 187.5 person-hours per month, and 2,250 person-hours per year. The numbers are staggering! If the employee is being paid the same $20 per hour, it equals a payroll expenditure of $45,000 per year to enter data into the system. The only question that remains is why is your business still using a manual process?
Payment Savvy is an expert at implementing a fully automated payment solution for your collections agency. Please contact Payment Savvy today to review options, obtain answers to questions, and start the process. We look forward to working with your company.
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