For any organization, collecting payments is a core procedure and automating it will result in greater business effectiveness. With the right systems in place, companies can ensure that followups are done consistently, reduce manual effort, and improve overall cash flow. This article will explore how payment collection automation works, what is needed for it, and what must be done in order to create an automated payment collection system.
Why If At All Payment Collection Should Be Automated?
Automated systems provide the benefit of easy communication regarding payment reminders and ensure clients are aware of their debts. Moreover, it helps build a legal case when advanced steps need to be taken, as legal documents can be created. Automated systems, through emails and WhatsApp, save time, reduce human intervention, and guarantee that your clients are contacted.
Key Components of Payment Collection Automation
1. Google Sheets For Managing Information
Google sheets can serve as the central repository where various information about debtors like names, amounts owed, and phone numbers can be stored. As all relevant information regarding payment is in one place, reminders to clients can be automated and sent through email or WhatsApp.
2. Email for Payment Reminders
Client payment reminders can be sent easily via email, and it also serves as proof in case of payment default. Emails play an essential role in your automation system. This helps in automating processes in an efficient manner.
3. Server for Sending Messages
Automated messages are sent on your behalf via the server which seamlessly integrates Google Sheets with email and WhatsApp. You can use the server to schedule reminders, and the clients will automatically receive them at the right time. Using the server to control messages eliminates the manual work of reminding clients, ensuring that they will constantly receive scheduled messages.
4. Customer Interaction
In the same vein, reminders automate followups, leading to quicker payment collection. The idea is to bombard clients with overdue reminders until their patience runs out and they are compelled to clear their outstanding payments.
5. Payment Collection
Finally, after all the reminders, payment is collected from the clients, allowing your business to enjoy healthy cash flows.
How to Build Automations for Payment Collection Systems
Building automations relies on a number of steps that must be followed closely to achieve the desired outcome.
Step 1: Create a Google Sheet
As the first step, set up a Google Sheet that captures all the necessary details in relation to debtors’ such as customers’ names, amounts owed, and how to contact them.
It is possible to export directly from accounting programs such as Tally to the sheet, or you can enter the information by hand.
If the system’s operation wholly relies on cloudbased services, I would recommend using a desktop or laptop for this configuration, even if the setup is powered off.
Stage 2: Create a Gmail Account for Reminder Dispatch and Set the API Server
Create a Gmail account that is used strictly for sending out payment notifications. A standard Gmail account will let you send 100 emails a day for free, whilst a pro account allows for 1,500 emails to be sent per day.
To use WhatsApp, you will need an API gateway. This paid service allows users to send bulk messages through WhatsApp. The API connects to your telephone and sends messages at preset times automatically.
Stage 3: Custom Payment Reminder Schedule
You can add the timings and the recipients and their frequency for the reminder schedule to your Google Sheets.
You can set the server to send WhatsApp and email notifications according to your timing to ensure that you receive responses promptly without extra work.
Resources Needed for Automation
Google Sheets:
Store debtor details on Google Sheets for easy access and management. This document should be updated frequently to make sure proper assistance is provided for reminders.
Email Address:
Make use of a Gmail account, whether free or paid, to send payment reminders through email. The free option comes with limitations regarding the number of emails sent in a day, whereas the paid option allows for bulk emailing.
WhatsApp API:
If you are dealing with many clients, the WhatsApp API will be needed to send bulk messages. This is a onetime purchase and should be managed according to how much messaging you intend to do.
Mobile Device:
You need a mobile phone that has an internet connection as well as WhatsApp. This device will work with the API to send reminders. Remember, web. whatsapp. com should not be used for the automation process.
Final Thoughts
- Store all debtor information on Google Sheets and set up automation for email reminders to follow up on the payment.
- Choose either a free or paid Gmail account according to your needs and use it to send emails.
- For maximum reach in messaging clients, incorporate the use of thirdparty WhatsApp APIs to automate the process messages get sent out to clients.
- For automation purposes, use the mobile WhatsApp or WhatsApp Business app only, and do not use WhatsApp Web for any reason.
Not only does automating the methods through which payments are collected save on immense amounts of time, but it also ensures reminders are automated consistently, making it almost impossible to miss out on timely collection of payments. This can be achieved with minimal effort, ensuring higher levels of cash flow, balancing stress levels, as well as tending to chasing overdue invoices.
