Updated: Jul 1, 2019
Can you win back your company by winning back your AR?
AR Restoration – Brittney Hensley
Winning back your company.
Chip Kelly - the Oregon Ducks football coach has a saying that has almost become a slogan of the entire state - and I think we could all make it ours too - “win the day”
Don’t dream of winning the super bowl or even the next game - just win today- at whatever job your are doing - in that moment- win that day in whatever it holds.
We can create process and order in our company to increase our opportunity to win - to increase the percentage jobs paying at the end of the job.
AR is not just making calls and trying to collect money after the job is done.
What is the main trend that is causing accounts to land in your receivables?
There can be many variables to why you have unpaid accounts sitting in your receivables eating up cash flow and taking up your time collecting. We want to share a few tips to help bring order to your AR and it actually starts at the very beginning of each job and the realization that collections depends on everyone.
We all work to get paid.
We all want to win.
What do you think are the top 3 complaints from customers when I call to collect on invoices owed to restoration companies?
CUSTOMER SERVICE: Your insurance agents may love you and yours sales team, but it’s your customers handing over the check, right. Your customer decides whether they trust and and like your company from their first experience with you. That starts with your estimators and project managers coming into their homes. Do you believe customer service matters?
First impressions make a huge difference and effect the entire job.
Establishing a relationship with your client will benefit your entire job from start to finish and it starts with training your entire staff for the WIN of every job. Customers are more likely to work with you when parts of the job do not meet satisfaction if they have a relationship with you otherwise they will find every reason they can to complain and get out of paying you what you are owed. Would you believe me if I told we have had people pay just because they appreciated the customer service but were not satisfied with the quality of work? We have.
CLEAR COMMUNICATION: From my experience this is a big reason why customers are not paying invoices right away. Customers need companies to go above and beyond and being clear of what to expect. Do not begin a job without the homeowners’ approval and appropriate documentation signed. Even with it signed don’t assume the homeowner is on board. Be clear. Communicate effectively. Many times, I call a homeowner to collect on their owed account and they say they haven’t seen or heard from the project manager in over a week or more and the job isn’t done. Well you can’t collect on that and they sure aren’t going to pay you for an unfinished job. Now they are upset and they have lost trust in your company making it even more difficult for you to work with them. It stemmed from the beginning of the job, they weren’t communicated to effectively, enough, or at all about what to expect and now they are not satisfied. You need your customers to understand the job being done, to trust you, to love the work you, and to refer your company to others. That’s how you win your company back and recover your AR.
INTEGRITY: Do the job right. I think anyone can smell whether a company has integrity from the first impression. Do what you say you’re going to do and make sure the job is done above the customers satisfaction. If you want to win and you want to get paid then be a company that does great work, with integrity. Care about their concerns, listen when they need to share about the job done, and do your best to respect what they need.
If you have communicated well with your customer, showed integrity in your work and from the start built a good relationship why wouldn’t they pay you right away?
However if you ask me what I believe the #1 reason unpaid jobs, I would tell you it is administrative error. More on this later.
Help your company Win. By wining each day at every job.