Managing 150 customers’ outstanding invoices is possible. But when those invoices range from $250 to well over $700,000 and are managed by an outside source whose work you can’t see…. well that’s like a blindfold race where you hope your partner gets you to the finish line and doesn’t take you off course! Corporate Business Development Manager Scott Kaplan of MightyHive found himself in just this scenario. Their account receivables management seemed to be doing all right, but he wasn’t quite sure.
A Hazy Understanding of Account Receivables
When Scott first started at MightHive, a programmatic advertising company that provides software and consulting on effective management of digital ad campaigns, he was troubled to find out that MightyHive’s initial AR Management lacked visibility:
“There was no tracking or visibility of progress.” Scott noted.
He started looking for ways to make the process more transparent without adding to the AR workload. In April 2015, Scott came across the FundingGates Receivables Software. He immediately saw a solution to his AR problem. Tracking customer outreach in their account history, sending invoices via the platform and customizing the tone of email reminders appealed to Scott as a more transparent and “robust” AR system.
Once he was signed up for FundingGates, Scott gained more visibility into his receivables – he got an efficient AR management process in place. This improved approach allowed him to extend the relationship with his customers from purchase through to payments. Scott took over the AR Management process without having any previous AR experience.
Improving the process and communication with their customers has led to some substantial business gains, too.
MightyHive is now “able to communicate to a much higher volume of clients” more quickly with the diverse email templates and has experienced a faster turnaround on past due invoices. Since March 2015, MightyHive’s Collections Effectiveness Index went from 35 to 74 at the end of December 2015 – a 111% increase.
A Bright Future
MightyHive has learned that effective AR management starts with choosing the right customers for their business. They now use customer history in FundingGates to gain “greater visibility on who are good and bad clients.”
Factors like outstanding invoices and lack of response to email and call follow-ups are as useful in determining future business relationships as running credit checks and obtaining references. MightyHive also consistently takes advantage of FundingGates’ payment features so their proven customers can pay directly from the invoice, saving time and bringing in money.