26 03, 2020

Transitioning Your Invoicing From Paper to Electronic

2020-03-26T13:03:24-04:00March 26th, 2020|Blog|

Remote working brings about many challenges for organizations and the AR department is no exception. For businesses that rely heavily on manual and paper-based processes, the current situation will be especially tough. With economic uncertainty the only certainty at the moment, it’s important for finance leaders to make the necessary changes now, in order to position their company for survival in the months ahead, and an eventual return to growth. One change that can help is to make the move to electronic billing. You’re not at your office to print and stuff envelopes. Your customers aren’t at their offices to receive invoices in the mail. Making your invoicing process fully digital enables you to deliver invoices from your at-home office and ensures your customers can receive those invoices from wherever they are working. Beyond the usual arguments for going digital – time savings, eliminate mistakes caused by manual entry, and Read More

10 03, 2020

Advice to Distributors For Managing Industry Disruptions

2020-03-10T08:32:10-04:00March 10th, 2020|Blog|

Examining all 19 wholesale distribution sectors, recent research from MDM paints a picture of a selling environment where consumer and government spending are keeping the economy healthy, but where manufacturing continues to soften. Annual revenue changes for the industry overall represented 1% growth in 2019 versus 2018. “We’re expecting a rebound in activity in 2020,” Indian River Consulting Group’s J. Michael Marks said in a recent MDM webcast. Despite his bullish outlook, Marks cautions distributors to look more closely at industry disruption versus economic conditions, and to factor the former into any good cash flow management approach. These steps go beyond shoring up balance sheets, taking out lines of credit, and doing a better job of A/R collections. They range from getting sales involved in the process to collaborating with key suppliers to developing “moats” that help your distributorship stand out from the pack. Create Moats Defined as “hard-to-digitize services,” Read More

25 02, 2020

8 Ways for Distributors to Preserve Cash Flow in a Slowing Economy

2020-02-24T20:49:04-04:00February 25th, 2020|Blog|

What is Cash Flow? The total amount of money received and doled out over a given period (usually a quarter), cash flow can either be positive or negative. Positive cash flow indicates that a company’s liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges. Companies with strong financial flexibility can take advantage of profitable investments. They also fare better in downturns, by avoiding the costs of financial distress. Once the money going in and out of the business has been calculated, companies can come up with a “free cash flow” number or FCF. This is the money that the distributor has left over to expand the business or return to shareholders, after paying dividends, buying back stock, or paying off debt. Wholesale Distributors are in a Sticky Spot Because they effectively bridge Read More

4 02, 2020

Are You in The Best Position to Ride Out the Economic Downturn and Come Out Stronger?

2020-02-04T10:59:54-04:00February 4th, 2020|Blog|

125 Months of Positive Growth Since emerging from the grips of the Great Recession in 2009, the U.S. economy has been in growth mode. After contracting sharply in the Great Recession, the economy began growing in mid-2009, following enactment of the financial stabilization bill (Troubled Asset Relief Program or TARP) and the American Recovery and Reinvestment Act. Economic growth has averaged 2.3% annually since then, with growth reaching above 3.5% during several quarters and just two quarters of negative growth. Through November 2019, the U.S. economy has grown for 125 months without any significant decline in economic activity that would mark the beginning of a recession, according to the National Bureau of Economic Research. This puts the current expansion as the longest on record in NBER dating, which goes back to the 1850s. All Economies are Cyclical But all economies are cyclical, which means at least some level of downturn Read More

28 01, 2020

In A Slowing Economy, What Can Distributors Do To Prepare?

2020-01-28T15:46:43-04:00January 28th, 2020|Blog|

Operating capital is the lifeblood of any organization and one of the key factors that keep companies running in both smooth and challenging economic conditions. When a distributor has cash flow, it can make payroll, pay its suppliers, keep the lights on and even manage the unexpected costs of running a business. Without this financial cushion, companies quickly find themselves operating invoice to invoice, and pulling resources from one area to cover expenses in another. With the national economic recovery in its 10th year, wholesale distributors may have forgotten what it takes to keep the lights on and the wheels running in a more challenging selling environment. Despite industry disruptors like Amazon Business, geopolitical issues such as trade wars, and a massive uptick in business-to-business e-commerce, wholesalers have been posting healthy year-over-year sales growth. Distributors saw their top-line revenue numbers and profits grow in 2018, according to the National Association Read More

13 01, 2020

4 Common Accounts Receivable Mistakes to Avoid

2020-01-02T14:33:59-04:00January 13th, 2020|Blog|

Managing accounts receivable (AR) could be a daunting task, especially when one mistake you make can potentially jeopardize the entire relationship you’ve built with your customers. If you have managed your company’s AR for a long time, you may have learned all the lessons already. But if you’re new in the role, it’s always better to prepare yourself ahead for problems you may run into instead of doing everything the trial-and-error way. On that note, here are the four most common accounts receivable mistakes you want to avoid. Mistake #1: Security – PCI Non-Compliance If your company accepts credit cards as one of the payment methods, you’ll need to pay close attention to whether your business and the tools you’re using are PCI-compliant. Being PCI-compliant means that you follow the set standards and guidelines that help manage and secure credit cardholders’ data. Being non-compliant means you’re putting yourself and your Read More

6 01, 2020

3 Reasons Why Customer Experience Needs To Be Your Priority

2020-01-02T14:35:44-04:00January 6th, 2020|Blog|

“If you build it, they will come.” Many will know this phrase from the 1989 film, Field of Dreams. In the years since the film’s release, this expression has become somewhat of a mantra for the business world. Supply a great product or service, and you’ll have customers. Seems simple enough. However, in today’s competitive economy it is no longer viable to simply build a great product or service, attract customers and call it a day. You need to know how to provide a great customer experience as well. The following are the top three reasons why you need to make customer experience (CX) your new priority. 1. Reduce Churn Imagine you’re in a store, shopping around. You know they sell the product you want, so it should be a simple task. But the store is small and crowded, and the products are organized in a way that makes no Read More

19 12, 2019

2019 Wrapped Up

2019-12-19T09:05:27-04:00December 19th, 2019|Blog|

The holidays mean something different to everyone. For some people, they’re about spending time with loved ones and enjoying favorite holiday foods together. For others, they’re about giving and receiving presents and making sure the special people in your life know how much you value them. Here at VersaPay, it’s no surprise that who we value most is our family and our clients. 2019 has been an exciting year for both VersaPay and our clients and with far too many highlights to cram into a single blog post, we’ll name only a few: We’ve added several fantastic and forward-thinking clients to our roster – including Kite Realty, Amer Sporting Goods, Samtec, and Dream Office. We’ve formed key strategic partnerships with organizations we believe can help transform the world of Accounts Receivables - including CashBook, MRI Software, Mastercard, and US Bank. We were named a Leader in the inaugural IDC MarketScape Read More