It is critical for businesses that the sales and AR teams are aligned on collections tasks. The communication between the two departments is key in reducing the time it takes to solve issues and disputes with customers, process payments, and avoid invoices remaining unpaid unpaid invoices. Both teams will be working towards making the business much stronger with a cash flow that can continue to support the operational requirements and growth targets.

Here are the three (3) reasons why sales teams should be involved in AR:

  • First point of contact:

    Sales teams are the first point of contact that customers have with the business. This is critical as:
    • They negotiate the contractual credit terms with the customer. This should be aligned with the credit policy established by AR as it has direct impact in AR metrics such as DSO.
    • The person negotiating the contract might not also be the one who will be paying the invoices; therefore, it is important for sales teams sales teams need to identify that contact early on to avoid any potential delays in sharing invoices and/or payment processing.

  • 360° customer relationship:

    Sales teams are the main handlers of the customers, so it is beneficial for them to be aware of all aspects of the accounts, as:
    • Both their relationship and revenues could be compromised if customers are not paying on time. Cancelled orders, blocked accounts, and credit terms removed could end up in the business losing the customers.
    • They will be developing strong relationships with customers over time, which can be leveraged when delays in collections occur.
    • Knowing the customers, sales teams will learn how to deal with delinquent customers and stop renewing credit terms.

  • United front:

    Both teams should work as a united front representing the business to the customers. The alignment between the teams will not only show professionalism, but alsoteams' alignment will show professionalism and ensure the business remains strong and on top of collections tasks, avoiding payment delays and disputes.

An automated AR solution will keep both your AR and sales teams informed at all times, providing accounts status, metrics, dashboards, escalations, and payment updates. As a cloud-based solution, YallaCollect will enable sales teams to access the information without disrupting their daily activities on the field and will provide an overall better opportunity for themprovide an overall better opportunity to resolve issues faster and avoid late payments.

Do you want to involve your sales teams in your collections processes? Schedule a demo with YallaCollect now!