“Payt disciplines debtors,” says Arjan Schipperus, director of RS Finance. For around two years, his accountancy firm has been using Payt.
“Debtors know they will always receive a reminder after 30 days. Because of 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.”
That is exactly why Payt is used not only for RS Finance’s own debtors, but also for the debtors of its clients:
“For our clients, it is a tool to ‘educate’ their debtors and ensure they pay outstanding invoices properly and on time.”
I want my invoices paid on time too
RS Finance: an IT accounting firm
RS Finance’s decision to use Payt is no coincidence. The firm is known for its boundless curiosity about smart software solutions and a strong drive to help entrepreneurs make the right choices.
“We want to become the iPhone of accountancy firms and make technology simple and accessible.”
The innovative Amsterdam-based firm is constantly looking for ways to work smarter, more efficiently and more easily for its SME clients by leveraging technology.
“The idea is that the right (online) tools give the entrepreneur insight into their business figures. On top of that, we offer a team of specialists – such as accountants, IT consultants, tax advisers, payroll administrators and HR consultants – who help the entrepreneur interpret the numbers and make the right decisions. We are constantly working towards that entrepreneur’s success,” Arjan explains proudly.
“We dive into the client’s industry and look for the best cloud tools. These industry-specific tools often relate to core business processes. Payt is a strong solution for the final part: the debtor process, in any sector,” says Arjan.
He adds that this is a process where a lot of money is often left on the table:
“It’s not uncommon for an entrepreneur to ask us for help with a financing application. In many cases, we first say: ‘Take a critical look at your debtor management. You want to raise money – but what can you do yourself? How high is your debtor balance?’ With tighter debtor management, many entrepreneurs can significantly improve their liquidity.”
Payt management environment for accounting firms
“By making entrepreneurs aware of the importance of well-organised debtor management, we are often asked whether we can manage debtors for them. We don’t do that – but we did look for a convenient online solution. That’s how we came into contact with Payt,” Arjan explains.
When RS Finance and Payt first connected, Payt’s software worked well for individual businesses, but was less suited to 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 wasn’t possible when we first ‘discovered’ Payt. When we shared that wish with Payt, they started developing that management environment in consultation with us. We supported them by sharing our vision, testing the software and providing feedback on new features.”
Because RS Finance has an IT background, they understood what was feasible in software development – something that strengthened the collaboration.
Debtor balance reduced by 45%
Schipperus has managed to reduce RS Finance’s debtor balance by 45% with the help of Payt.
“That is a really high percentage – especially considering we’re a growing organisation!”
For RS Finance (and its clients), one of Payt’s biggest strengths is that the software encourages conversation.
“Nine times out of ten, an unpaid invoice isn’t unwillingness – something else is going on. The client can’t pay, or doesn’t want to pay. Bringing in a collection agency in that situation is an intervention that can seriously disrupt, or even damage, the client relationship. It’s far more constructive to open a dialogue and find out what’s going on.”
Payt supports that in two ways:
Because the debtor knows, through the consistency of the process, that a reminder will follow within a short timeframe if they don’t get in touch (for example, to arrange a payment plan).
Because Payt includes a built-in communication platform at invoice level, making it easy to contact debtors directly about a specific invoice.
Low-hanging fruit and the 80-20 rule
Arjan also sees that debtor management in many organisations often needs attention:
“Quite often, we see debtor teams focusing on the ‘low-hanging fruit’ – invoices that are easy to collect receive most of the attention. The difficult debtors who consistently don’t pay end up at the bottom of the pile.”
He explains that the well-known 80/20 rule applies here:
“Those 20% of non-paying debtors put enormous pressure on an organisation’s cash flow and account for 80% of uncollectible claims. These debtors only wake up when they receive a reminder.”
With Payt, debtors know that after a second reminder, a reminder including collection fees will follow.
“That consistency in the process means you can manage your debtors’ expectations. And you’ll see invoices suddenly being 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 encourage them to try. And not only because it helps them collect invoices faster,” Arjan tells me.
He adds:
“To use the software, our clients need to have their administration in order. In that sense, Payt is also a stick behind the door for entrepreneurs to keep their bookkeeping up to date every day. And that, in turn, helps us do our job better.”
