Version One offers document management software

Edited by the Manufacturingtalk editorial team Mar 24, 2009

Version One is highlighting the importance of document management technology in helping to prevent overdue payments from customers.

With overdue payments to SMEs increasing, Version One stresses the importance of the electronic delivery, storage and retrieval of financial documents, especially invoices, statements and proof of deliveries (PODs), in order to receive customer payments in a timely manner.

'If organisations and especially SMEs are going to survive the downturn, getting cash in as quickly as possible with the help of the latest document management systems is crucial,' said Lynne Munns, general manager of Version One.

A frequent reason given by customers for not paying invoices on time is that they haven't received the POD and/or the invoice.

In fact, it can sometimes take weeks before a mislaid POD is finally located and a sales invoice can be raised.

By scanning PODs and electronically delivering them to the customer with the corresponding sales invoice, not only are they received a day or two sooner than if they'd been posted, the customer cannot use the excuse that they haven't received the invoice to delay payment.

With electronic document management, the time credit controllers spend pushing paperwork is also eliminated.

By electronically delivering invoices, statements and PODs and having instant desktop access to all these documents, credit controllers no longer spend time posting documents, making copies of sales invoices and digging out original orders and PODs, allowing them to focus on actively chasing payments.

'With research identifying that UK SMEs are currently disappearing at a rate of 86 each day, urgent action is needed,' said Munns.

'SMEs need to carry-out a healthcheck of credit control processes to ensure that they are operating as efficiently as possible, are electronically invoicing customers and are not writing off bad debts due to lost PODs.

'Although organisations cannot control the effects of the economic downturn, improving cash collection processes is certainly within their power,' she added.