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Should I Use Collection Metrics in my Incentives

Collecting payments on invoices can be a critical process for any company or organization. If companies canu2019t collect cash from the customers on time, they can face difficulties in paying the employees, vendors and keeping the cash flow going. This is why it is important to include collections in the sales teamu2019s incentive plans to ensure payment collections.

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Should I Use Collection Metrics in my Incentives

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  1. Should I Use Collection Metrics in my Incentives

  2. Collecting payments on time is critical for a business to ensure they don’t run out of cash. Accounts receivable is one of the top areas of concern for CFOs. Keeping the cash flowing is imperative for any organization.

  3. Companies employ measures like early payment discounts to collect payments. Selling the accounts receivables to professional collection companies is also a way. Introducing collection metrics in incentive plans can be very effective for companies.

  4. Should Collection be a part of the Incentive Plan?

  5. The sales team represents any company and interact with the customers. This is why many companies place the responsibility of collection on the sales team. Here are some scenarios where companies can add collections to their incentive plans.

  6. If the customers need to reminded constantly about payment of invoices. Irregular payments post the due date on the invoice is also a sign for including collections. Industries having long payment terms are also good candidates.

  7. It can be challenging to include collection metrics into incentives. Invoice payments tend to cross multiple quarters and hence accurate collections are necessary. Introducing collections into incentives improves collection health and the cash flow situation.

  8. Thanks! Would Love to hear from you. Incentivate Solutions Add: Office #14A, 3rd Floor, City Vista,, Kharadi, Pune, Maharashtra 411014, India Tel : +91-9960267767 Email : info@incentivate.in Website : https://incentivate.in/ Know More : Should I Use Collection Metrics in my Incentives?

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