- With a rapidly growing clientele, Professional Diversified Flooring (PDF) needed a streamlined process to expedite accounts receivable.
- Vicasso implemented an automated collections process based on Accounting Seed for Salesforce, an app already in use in PDF's org.
- The streamlined invoicing and automated collections process improved time-to-pay rates for PDF's customers. The system also saves time for PDF's accounting team and provides the company with the ability to better manage short term cash flow.
Automated Collections Process Streamlines Accounts Receivable Process & Accelerates Customer Time-to-Pay
California-based Professional Diversified Flooring is a big player in the large commercial development sector. The company is focused on environmental trends in carpet, vinyl, wood, tile and a variety of other durable and cost-effective flooring solutions for discriminating customers. Additionally, PDF is passionate about the environment and uses green, LEED-certified materials whenever possible.
In business for 35 years, customers have come to rely on PDF's uncanny ability to solve commercial construction-related flooring challenges. According to Jake Hoffnagle, Vice President of PDF, his knowledgeable team brings not only experience to each and every job, but also a "passion for making the process of designing, installing and maintaining commercial flooring a hassle-free and cost-effective experience."
Moreover, PDF is committed to providing the highest quality service backed by the kind of reliability that customers are able to count on time and again. It's for these reasons that PDF is able to boast considerable repeat business as well as a growing new clientele. The company uses Sales Cloud on the Salesforce platform to empower sales reps to generate leads, track opportunities and close deals.
When PDF added Accounting Seed, a 100% native-to-Salesforce accounting app to its org, efficiency piqued exponentially. Accounting Seed immediately provided PDF's finance department with the ability to manage invoicing, accounts receivable and accounts payable in an extremely organized fashion. The robust accounting app for Salesforce allows finance staff to obtain client information quickly and easily – fueling the company's ability to provide superior customer service.
However, while PDF's financial processes were organized, Mr. Hoffnagle said the same couldn't be said of his customer's accounting departments. "Companies handle accounts payable in differing ways. Within each company, there are finance people who must reach out to various people who can authorize payment within their company. It was becoming difficult for PDF to get paid in a timely fashion."
Getting Proactive about Accounts Receivable
As PDF's client list grew, Mr. Hoffnagle became even more aware of the major accounts receivable challenge. It was time for PDF to become more proactive about collections to encourage more timely payments. A conversation with Vicasso's Salesforce Consultant, Kelly Wood, was the first step in solving PDF's accounts receivable challenge. She suggested implementing a customized collections process within Accounting Seed. The system "gently reminds" clients about outstanding invoices and provides all information in one place so that approvals can be fast-tracked.
Vicasso built an email template for PDF that allows a client statement to be included directly in the body of the email; there are no email invoice attachments that can be misplaced by recipients. When a customer has at least one overdue invoice, the system sends an email. The process "gently" encourages customer response. Mr. Hoffnagle says his customers can now share information within their own finance departments quickly and easily.
"Customers are paying faster because we are making sure everything is sent out at the same time so it's easier for them to process the invoices. Every month, any invoice that is at least 30 days overdue gets a notice." PDF calls it a "statement of their account." Clients recognize that it's a bill that needs to be paid.
- The beauty of Accounting Seed for Salesforce is that it gives users a single, highly customizable, cloud-based system that is easily scaled as the client's org grows.
- The automated solution sends statements in batches so the process no longer needs to be monitored by PDF's accounting staff. Since it requires less manual work for employees, ROI starts adding up immediately.
Cash Flow Forecasts are a Breeze with Accounting Seed
"This collections process has made it easier to forecast cash flow," Mr. Hoffnagle said. "When they get the notice, clients tell us when they are going to pay us and we can log their intentions."
Moreover, the flooring company owner explained the collections process improves communication throughout the transactional process. "We can go back and track what's been communicated and we can remind them again at any point."
Mr. Hoffnagle also said the collections process has proven to be a real management tool for him. "I can drill down on the oldest outstanding debts or biggest unpaid amounts. I can see when they have been notified about an outstanding invoice and I can see when they pay. Plus, I don't have to bother an employee to get that information."
"Problem Solving at Its Finest"
Professional Diversified Flooring has been relying on Vicasso for years to optimize its Salesforce org. "Ms. Wood really understands our business, what we do and our requirements. She is very knowledgeable about general business and accounting practices," Mr. Hoffnagle said.
Reducing busy work and getting paid faster? Yes! "For me, it's problem solving at its finest," he added. "We have been unbelievably happy with the work we've received from the entire Vicasso team."