NEWSCYCLE develops and delivers software technology that empowers the global news media industry. As a leader in media, NEWCYCLE’s mission is to help the media industry manage the daunting transition into the digital space with their innovative technology. Companies across North America and around the globe rely on NEWSCYCLE to help them create stronger, better-informed communications while protecting the integrity of news, advertising, and customer information.
Challenge: New Merger, New AR Challenges
Before implementing an accounts receivable platform, NEWSCYCLE issued a majority of its invoices by email. Their accounts receivable process was riddled with tedious manual processes consuming not only their employees’ time but also their customers’. With a recent merger of 4 companies, this introduced new pressures to NEWSCYCLE’s accounts receivable process. Through their acquisitions, the size of their customers had grown introducing complications as invoices were required to be sent to several different recipients for larger customers. This approach became error-prone and tedious as emails would be sent to the incorrect recipients or wouldn’t be received at all due to employee turnover of their customers accounts payable teams at customer sites.
In addition to the challenge of emailing invoices to the correct individuals, customers would often ask for invoices to be resent. Once invoices were finally received, NEWSCYCLE faced challenges receiving full payment. They experienced short pays with no explanation and payments without a customer invoice number, leaving NEWSCYCLE to guess the payment source.Their accounts receivable team was suffering with lack of insight and no effective way to communicate with their customers regarding payment issues.
Looking for a Solution: Finding a Way to Save Time and Money
As a leader, driving the digital transformation within the media industry, NEWSCYCLE understood the value of leveraging technology and bringing their accounts receivable process online.
As NEWSCYCLE analyzed all the time spent resending invoices, managing invoice disputes, chasing payments and manually matching payments to invoices, they knew it was time to invest in an accounts receivable solution.
When evaluating solutions, NEWSCYCLE wanted a partner that understood their business challenge, could articulate effectively how to solve the problem and focused on making it a reality.
NEWSCYCLE decided VersaPay would be the best partner as VersaPay understood their industry and had a solution that was cost-effective, easy to implement and most importantly easy to use for their employees and customers.
Implementation: Putting VersaPay ARC into Action
From the beginning, NEWSCYCLE and VersaPay established a partnership with a dedicated individual from each team to manage the implementation. VersaPay was able to address security questions with software-testing to demonstrate their industry leading security practices including being a PCI Level 1 Compliant, cloud-based platform. Working closely together, VersaPay customized the solution to meet NEWSCYCLE’s needs and they were up in running in a short period of time.
Results: Reduced DSO and an Enhanced Customer Experience
Since implementation of the VersaPay ARC platform, NEWSCYCLE has seen a significant 10% reduction in their days sales outstanding (DSO). The ability to offer a better experience for their customers and employees has been monumental to save time, money and make customers happy.
NEWSCYCLE’s accounting team no longer spends time copying, scanning and emailing invoices and following up with late payments. As a result, NEWSCYCLE was able to reduce the number of people calling customers for collections from 5 to 1 and refocus efforts to high-value tasks such as cash forecasting.
Not only does the accounts receivable team have better visibility into customer accounts, but more importantly, customers do. Customer communication has improved significantly with NEWSCYCLE’s self-service invoicing and payment platform. Customers appreciate the automatic notifications if payment is overdue and ability to enter notes for short pays. With direct access to their accounts, customers are paying faster, with little to no follow-up. Interestingly, NEWSCYCLE was receiving payments from even their most difficult customers that were notorious late payers.
Customer satisfaction has greatly increased as customers note that the system is simple and easy to use allowing them to efficiently stay on top of their NEWSCYCLE account. These happy customers have even approached NEWSCYCLE to see how they can use VersaPay for their own operations.
“VersaPay is so liked by our customers that when they attended our user conference this year, we had a number of individuals that were interested in learning more about using VersaPay for their own operations.”
Preston McKenzie, CEO, NEWSCYCLE Solutions