Improving accounting team effectiveness by 80%
NEWSCYCLE is providing a better experience for both their customers and accounting teams. By implementing a solution that gives customers direct access to their accounts and makes it easier for those customers to communicate with them, NEWSCYCLE has seen a 10% reduction in their days sales outstanding (DSO).
By automating many of its accounts receivable tasks, NEWSCYCLE was able to reduce the number of people calling customers for collections by 80% and refocus efforts to high-value tasks such as cash forecasting.
THE STARTING POINT
NEWSCYCLE’s accounts receivable process was riddled with tedious manual tasks consuming not only their employees’ time but also their customers’. The problem emanated from their invoice delivery system and was compounded by a recent merger. The majority of NEWSCYCLE’s invoices were delivered via email. This approach was highly manual and thus error-prone. Invoices were sometimes sent to the wrong individuals and sometimes were never sent at all due to employee turnover at their customers’ sites. Often times customers would ask for their invoice to be resent, causing delays in payment and ultimately wasting more time.
The size of NEWSCYCLE’s customer base grew significantly with a merger of four companies. Complications brought on by the increased scale and new customer requirements were more than their AR process was equipped to handle. Large customers required invoices be sent to several different recipients. Some customers would short pay with no explanation or make payments without remittance information, leaving NEWSCYCLE the complicated task of accurately reconciling those payments.
With a lack of insight into the status of their invoices and payments, and no effective way to communicate with their customers regarding issues, NEWSCYCLE’s accounts receivable team was suffering.
NEWSCYCLE implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, NEWSCYCLE’s accounts receivable team has complete visibility into their invoice presentment, including if and when customers viewed an invoice. Through the online payment portal, NEWSCYCLE’s customers are in control of when and how they pay. Customers can short pay with a note explaining why, identify what invoice number they are paying towards, dispute charges and communicate with the AR team, all within the portal.
“With the VersaPay solution we can effectively manage all aspects of invoicing, accounts receivable and payments in a PCI compliant environment, provide automatic notifications and reminders, and save a great deal of time by automating many routine tasks. The enhancements enable us to focus more time on our customers.”
Lynn Danko, CFO
Customer satisfaction has greatly increased as customers note that the system is simple and easy to use. With direct access to their accounts, customers are paying faster, with little to no follow-up. What is most significant is that NEWSCYCLE is now receiving payments from even their most notoriously late paying customers.
The ability to offer a better experience for their customers and employees has been monumental to save time, money and make customers happy.
Invoices per month: 1,000+
ERP: Sage Intacct
NEWSCYCLE Solutions is the leading provider of software and services powering the global media industry. With headquarters in Bloomington, MN and regional offices throughout the world, NEWSCYCLE Solutions is a trusted partner serving over 10,000 news media, broadcast, magazine, financial services and corporate clients.
Analyzed the time spent resending invoices, managing disputes, chasing payments and manually matching payments to invoices.
NEWSCYCLE wanted a partner that understood their unique business challenge.
Selected VersaPay due to ARC’s flexibility and industry leading security practices, including being PCI Level 1 Compliant.
NEWSCYCLE and VersaPay established a partnership with a dedicated individual from each team to manage the implementation. VersaPay customized the solution to meet NEWSCYCLE’s needs and they were up and running in a short period of time.
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