“Payt disciplines debtors,” says Arjan Schipperus, director of RS Finance. For about two years, his accounting firm has been using Payt. “Debtors know they will always receive a reminder after 30 days. Due to the strict follow-up and clear communication, starting a collection process is not an empty ‘threat’, but a logical next step in a standard process.” This is precisely why Payt is used not only for his own debtors but also for the debtors of his clients. “For our clients, it is a tool to ‘educate’ their debtors and ensure they pay outstanding invoices neatly and on time.”
I want my invoices paid on time too
RS Finance: an IT accounting firm
That RS Finance uses Payt is no coincidence; the company is characterized by an unbounded curiosity for smart software packages and a tremendous drive to help entrepreneurs make the right choices. “We want to become the iPhone of accounting firms and make technology simple and accessible.” The innovative accounting firm from Amsterdam is constantly looking for ways to make it even better, more efficient, and easier for their SME clients using smart software. “The premise is that the right (online) tools help the entrepreneur gain insight into (the figures of) their business. In addition, we offer a team of specialists, such as accountants, IT consultants, tax specialists, payroll administrators, and HR consultants who help the entrepreneur interpret the figures and make the right choices. We are constantly working on the success of that entrepreneur,” Arjan proudly explains.
“We delve into the client’s industry and look for the best cloud tools. These industry-specific tools often relate to the business process. Payt is a good solution for the last part: the debtor process, in every industry,” says Arjan. “An important process, where often a lot of money is left on the table. Not infrequently, an entrepreneur asks us to help with a financing application. In many cases, we then say: “First take a critical look at your debtor management. You want to raise money, but what can you do about it yourself? How high is your debtor balance?” By conducting tighter debtor management, many entrepreneurs can significantly improve their liquidity.”
Payt management environment for accounting firms
“By making entrepreneurs aware of the importance of a tightly organized debtor management, we regularly get asked if we want to take care of debtor management for them. We don’t do that, but we did look for a handy online solution. That’s how we came into contact with Payt,” Arjan explains. When Payt and RS Finance met, Payt’s software was well-suited for individual businesses, but less so for a firm like RS Finance. “We wanted to be able to view and manage the debtor management of all our clients in one environment. That was not possible when we ‘discovered’ Payt. When we raised that wish with Payt, they started developing that management environment in consultation with us. We helped them by providing our vision, testing the software, and giving feedback on the developed features. Because we have an IT background ourselves, we know the possibilities and limitations involved in software development. It helped us in our collaboration.”
Debtor balance reduced by 45%
Schipperus himself has managed to reduce his organisation’s debtor balance by 45% with the help of Payt. “That is really a high percentage, especially considering we are a growing organisation!” The biggest advantage of Payt for (the clients of) RS Finance is that the software facilitates conversation. “Nine out of ten times, an unpaid invoice is not unwillingness, but something else is going on. The client cannot or does not want to pay the invoice. Engaging a collection service in such a situation is an intervention that significantly disrupts and even endangers the client relationship. It is much more constructive to try to engage in conversation with the debtor and find out what is going on. Payt’s software facilitates that conversation. On the one hand, because the client, due to the continuity in the debtor process, knows that they can expect a reminder within a short time if they do not immediately contact to, for example, arrange a payment plan. On the other hand, because with the built-in communication platform at invoice level, it is easy to communicate with debtors.”
Low-hanging fruit and the 80-20 rule
That debtor management within many organisations could use some attention is also noticed by Arjan: “Not infrequently, we see that debtor staff focus on the ‘low-hanging fruit’; the invoices that are easy to collect get the most attention. The difficult debtors who structurally do not pay end up at the bottom of the pile. The well-known 80-20 rule really applies here: those 20% non-paying debtors put a huge strain on an organisation’s cash flow and cause 80% of the uncollectible claims. These debtors only wake up when they receive a reminder. If an organisation uses Payt, debtors know that after a second reminder, they can always expect a reminder with a collection fee. That continuity in the process ensures that you can manage your debtors’ expectations. You will see that invoices are suddenly paid much faster.”
Advantage for RS Finance
“Although we always present our clients with a wide range of software, Payt is the only solution we strongly advise them to try. Not only because it helps our client collect invoices faster, by the way,” Arjan confides to me. “To use the software, our clients must have their administration in order. Payt is therefore also a stick behind the door for entrepreneurs to keep their administration in order daily. That, in turn, ensures that we can do our job better.”
