How to Efficiently Manage and Collect Receivables

Authored by: Limesh Parekh, CEO, Enjay IT Solutions

SMEs face challenges because of reasons such as everyday activities like sales and firefighting getting priority, leaders being too busy to be able to hold the responsible people accountable, and lack of tools to help leaders predict short-term cash flow.

All this means debt collection and managing receivables becomes a huge challenge to streamline for the business. The resulting lack of cash flow not only restricts the business from adding new and innovative products to its offerings but also makes it difficult for the business to remain profitable. Despite this problem existing for over a decade, most businesses have had little choice but to put up with it every day. But not anymore.

The Integrated Receivable Management Solution

Most SMEs use Tally as an ERP-cum-CRM tool to manage accounts. While Tally has many features to manage accounts and finance, one aspect missing is the ability to predict, manage and track receivables.

Tally ERP tracks receivable based on the due date, but in India, receivables are seldom received on due dates. There is a need for something more flexible. To address this, Enjay IT Solutions has integrated its CRM with Tally, offering a Receivable Management System (RMS) that has turned out to be very popular among customers for various reasons.

Some benefits of the RMS are:

Real-Time Receivables Information

People managing receivables need real-time information about customers’ outstanding dues and provide them with ledgers if requested. Rather than waiting to get to the office to do this, vendors can share information like outstanding amount, bill-wise charges, ledgers and more through Enjay’s CRM synced with Tally directly from their mobile phones.

Unique Receivable Dashboard

SME owners want to know, day-wise receivable and person wise receivable. Person wise because there are more than a few persons responsible for collection. RMS Dashboard (on Web and Mobile) shows receivables based on expected days, e.g. today, tomorrow, next 7 days, next 30 days and so on. The second dashboard shows collector-wise receivables.

Keeping Sales Teams Mobile

Since the Receivable Management System is available on a mobile app, salespeople no longer need to do administrative tasks like information sharing from the office. They can do so on the go and continue to do revenue-generating activities.

Logging Follow-Ups

Salespeople can log activities they’ve conducted to follow up on outstanding dues and can also log actual receivables dates as against the promised dates. This enables business leaders to predict more accurate cash flow in the short term and take decisions accordingly.

Omni-Channel Communication

The RMS tool allows users to send information from any screen – reminders, bill-wise or location-wise details, ledgers, etc., directly through WhatsApp, email, or SMS using the party’s contact details mentioned in Tally. This brings downtime spent on rework drastically and allows people to invest it in more productive tasks. The system offers a host of useful tools and features like useful analytics, mobile dashboards, real-time data syncing, automated reminders, follow-up logs, and more.

“This is a very convenient tool for us,” said Ashish Sharma, Business Head, Intelligent Systems Services. “The time we spent on managing receivables has halved and accountability has improved as well. More importantly, our collections have improved by 36% in the last quarter alone.”

Enjay IT Solutions Co-Founder and CEO Limesh Parekh prod business leaders to not take managing receivables lightly. “Think about it like this,” he said. “With inflation optimistically at around 6% and the bank giving us 6% interest on our savings, each month that we delay collections means our dues lose 1% in their value. In percentage terms, this appears small. But in absolute value, imagine how large this number is for a business, and what it could achieve with these funds.”

Very Big Opportunity for IT Partners and SIs

 Limesh Parekh added “We are shortly launching a standalone app for RMS. Combined with our CRM, Tally Cloud and other Solutions, Enjay solutions offer a big opportunity for Partners. Enjay is a channel partner-focused company and we are looking forward to signing up strategic channel partners. Receivable Management Solution that also doubles up as Tally on mobile is a technology that will enable SMEs to become more efficient and effective in their functioning.

Authored by: Limesh Parekh, CEO, Enjay IT Solutions