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Blockchain: The Answer to an Efficient, Transparent Hiring Process?

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How can blockchain help with the transparent hiring processs

Blockchain: The Answer to an Efficient, Transparent Hiring Process?

Blockchain technology has recently changed how employers and employment agencies find, screen, and verify job candidates. The recruitment process has transformed massively, helping recruiters find the right candidate. Global MNCs are increasingly turning to decentralized ledgers because blockchain provides security for safeguarding data integrity, like job histories or academic credentials. In September 2021, Block data research found that 65 of the top 100 publicly traded companies actively worked on blockchain solutions.

This constant change shows that modern hiring methods have improved over time, even though resume screening has mostly stayed the same. Back then, LinkedIn led the pack as a platform for employment, making life easier for job searchers and employers by hiring six applications per minute. Now, several comparatively modern technologies—like cryptocurrency and blockchain—show promise for employment.

Although there is technology adoption, the overall hiring process is still complex. It’s a big bet that blockchain will be the only way to solve all the problems with recruiting. Nevertheless, database processes and the automation of hiring processes are unavoidable.

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What makes blockchain an ideal option for recruitment?

Blockchain is a decentralized, open ledger configured to record anything of value. It is a public record of economic transactions. To put it another way, it is used to keep accurate records.

Furthermore, you cannot alter the digital record, and it is impossible to steal, remove, or change data that has already been placed on the chain. The hiring process will be simple when personal information like a person’s education, career history, and other work-related details are securely kept and exchanged on a real-time public digital ledger or blockchain.

A blockchain allows a recruiter to get information about a potential employee’s training and work history quickly, accurately, and in full. Therefore, it is impossible to accept a resume at face value, contact references directly, or spend excessive time poring through the LinkedIn profile of the candidate.

How can blockchain help with the transparent hiring process?

Many people may find it surprising that blockchain is becoming relevant in the recruiting market, thanks to its process for dealing with the collection of data.

 

But blockchain will continue to revolutionize the employment market.

Although blockchain is still in its infancy, it already has the potential to alter the way recruiters find prospects. Let us check how blockchain helps in recruitment-

Candidates cannot lie on their resume

People often lie on their resumes about their qualifications and jobs they’ve had in the past. According to reports, some candidates who applied for a job in the last six months would think about giving false information about themselves on their resumes to land their dream job.

With blockchain, however, this kind of data manipulation is no longer possible because people can no longer lie and add fake successes to their resumes, like title changes, raises, etc. Because blockchain technology is completely open and doesn’t have a single point of control, recruiters can store any information on their ledger, no matter how far away it is. Additionally, because of the decentralized nature of the blockchain, it will be difficult for anyone to provide fraudulent information because any call entry will be automatically rejected. Also, the information will show why the candidate was fired from their last job. Reasons could be anything from moonlighting to inaccuracies in work. Since employee moonlighting is a common thing, recruiters need to be confident.

Accuracy

Credentials of employers, candidates, and agencies verified using blockchain are trustworthy due to their accuracy in creating records. Every digital information is kept up-to-date and in the form of a permanent record of the candidate’s data.

Saves Valuable Time for Recruitment Professionals

Today, work is no longer confined to a single area. Because of this, it is now hard to find a candidate’s work history and confirm it. Blockchain, however, can speed up the verification process. From employment background checks to other details, the data will provide complete details and save valuable time. Imagine that you have used the conventional hiring procedure to find the ideal individual. You must now finish the recommendations. How will you carry that out?

A few alternatives are available, including contacting the candidate’s former employers or lecturers to complete the referral. But with blockchain, you will have to spend less time finding and talking to the previous employers of the person you want to hire. You can get the information quickly, thanks to blockchain technology.

Does Background check

Undoubtedly, a blockchain HR system can speed up background checks and referrals, giving recruiters instant access to candidates’ work and school history, etc.

All information, like past addresses, credentials, work history, visa status, and payment information, can be kept in a single blockchain application.

Using blockchain, it is possible to access the verified records and quickly and safely check all the information a candidate has sent in. A recruiter can hire the candidate because they are confident that the information provided by the candidate is as accurate as possible. Blockchain can also aid in multidimensional or skill matching when used with AI.

Complete the Contracting Procedure

Blockchain can help speed up the hiring process by making it easier to sign contracts with candidates. It can be done in seconds, just like running a background check. When you hire someone or bring them on board, you need to give them different login information, details, passcodes, security access codes, etc. As a recruiter, you might have to walk back and forth between different papers and departments to get and confirm the information you need to finish the profile of your new hire and put it into your system.

However, blockchain hiring technology can eliminate the need for all these employee contracting stages. Smart contracts on the blockchain make it possible to input employee information, obtain their payroll number, and access their employment contract quickly and precisely. On the other hand, paperwork always has an opportunity for error.

Complete Security

The distributed, decentralized design of the blockchain makes pre-employment screening more secure and reduces the chance of identity fraud. The distributed ledger replicates and cryptographically secures the candidate’s verified credentials. The user is in charge throughout the process and decides exactly what information about themselves to share and with whom.

Recruitment through blockchain: How long will it stay?

Employment background checks are a vital part of recruitment, and with the blockchain enabling the process, things are quite handy. Blockchain recruitment is a new thing that will stay for a long time. Some recruiters are not big fans of blockchain recruitment technology. Some others even think recruiters may lose their jobs if businesses use blockchain for human resources.

When you are reluctant to try something new and allow indecision to guide your choice, you stunt development and lessen the likelihood of finding novel and innovative solutions. Indeed, blockchain has already impacted many sectors, including banking, insurance, real estate, and finance. Cryptocurrencies built on blockchain technology are already widely used in commerce. It is now getting into the recruitment zone and is bringing massive change.

Takeaway

Want to utilize blockchain in hiring to its fullest potential? Or do you wish to incorporate blockchain technology into your company? Using MIMOIQ’s service can help you with a background check on an employee and other things.

Using modern tools, MIMOIQ makes business recruitment simple by integrating cutting-edge and futuristic technologies like blockchain, AI, and face recognition into your company.

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What Background Screening Automation can do for Indian Companies?

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What Background Screening Automation can do for Indian Companies?

Background screening is the most critical part of hiring; companies screen candidates before sending the offer letter. However, earlier, the background screening process was done manually and involved paperwork, which was time-consuming. Thankfully, in the age of automation, things are easy. Background checks are improving with artificial intelligence (AI) and other innovative technology. Employee background check processes are now entirely automated, enhancing their effectiveness. Candidate data is also available in public databases, which saves physical resources.

The HR department is vital to the company’s ability to hire new employees. But it can take a long time to look at many applications and check the information given. Working with a screening service that combines best-in-class technology with expert advice and direction can help you get high-quality background check results and improve the overall effectiveness of your hiring process. Using technology to do background checks during the hiring process has several benefits. First, the way background checks are done has entirely altered thanks to modern technologies, which means hiring new staff requires considerably less manual labor. This article presents how end-to-end automation software helps with background screening.

Table of Contents

What are automated background checks?

An artificial intelligence (AI) program called Automated Background Checks runs background checks on prospective employees. A background check investigates a candidate’s past based on the rules set by their current or potential employer. A background check entails looking into a person’s work, education, criminal history, credit history, motor vehicle history, and license history.

How does automated background screening help Indian companies?

Reduces Double Entry with ATS Integration

Most recruiters already know that an applicant tracking system (ATS) is helpful because it makes it easier to track many resumes and other candidate details. When coupled with background screening technologies, the ATS can reduce double entry and provide talent acquisition professionals with information on where candidates stand in the screening process.

You can enter identical candidate information into two different systems if your applicant tracking system (ATS) and background screening procedure operate correctly. But when you put them together, your applicant tracking system automatically sends demographic information about applicants to your background check tool. It helps to proceed rapidly from one step to another and makes background screening easy.

Speedy Verification

HR staff members would only want to spend a little time on verification. The background check system has made screening and hiring new candidates quick and easy. Nowadays, all a business must do to request a background check on a job application, or recruit is emailing a screening request to the background check provider. Background checks in India are done by top companies using automation software that helps with quick verification. They can easily access the candidate’s data and get their educational background. This speedy verification process is what makes automated tools worth using.

Huge organizations frequently review the documents of hundreds of applicants. Just picture doing that by hand! Most utilize specialized technologies and safe internet platforms to speed up turnaround to a few days.

Handy and Accurate Information

Using reliable screening sources has contributed to gathering accurate information on candidates’ pasts. Earlier, when screening took place manually, even HR personnel were prone to miss information, especially when performing a criminal history or reference check. In-depth background checks are now available thanks to innovative technology. The results are also accurate and trustworthy.

Background checks are required for new hires and candidates by state organizations and agencies. The extent of the check will be decided by the organization.

Completely Automated Screening

One of the reasons Indian companies are moving towards screening software is its automated background-checking features. Candidates must initially fill out a form on the employer’s website. The data is then automatically filled in by the screening service. HR must keep an eye on the verification’s development and await the results. The results are immediately made available in response and require no further action.

HR staff gains enough benefits with technological progress. Property owners run background checks on prospective tenants to ensure they let a trustworthy person into their homes. They receive the results instantly, exactly like HR professionals do. Proprietors and property managers have access to screening equipment that deconstructs and electronically processes personal data to look into the histories of tenants.

Simplifies Drug Screening

Although scheduling a visit to a testing center is required for employment drug screening, it should be brief. You can give candidates access to a user-friendly portal where they can browse for testing centers nearby, schedule their test, and obtain their results once they are ready using mobile, paperless drug screening technology. 

Paperless drug testing also stores chain of custody information to save candidates from keeping track of paper documents when they take a drug test.

Data Protection

Many employers think twice before revealing information through a background check. Data sharing between HR staff members is made secure by background screening technology, preventing it from falling into the wrong hands. Even though background check technology does not completely replace risk management practices, it does ensure adherence to the highest security standards.

It can assist organizations in setting up security measures to protect data and traffic to servers that are not on their property. The company’s IT team or department must work on limiting data access to third parties.

Work Eligibility Verifications

Verifying a candidate’s right to work is the common routine under the hiring procedures. If hiring a candidate remotely, it may be impossible to complete in-person verification of job eligibility documents, such as a passport, birth certificate, or driver’s license.

You can virtually gather and verify documents and run an entirely paperless I-9 process by working with a background check company that provides electronic I-9 services. Additionally, you can integrate offline work processes with your background screening software to quickly spot people whose social security numbers do not match and receive alerts when someone’s work authorization is about to expire.

Transparent Work Environment

A significant benefit of using technology in hiring and screening is the improved working environment brought about by higher-quality recruits. Additionally, it frees HR staff members’ time to concentrate on other activities. Background checks can also reduce potential risks in the future. The degree of trust in the workplace can arise when a person consents to ongoing monitoring.

End-to-End Automation

Technology allows for the end-to-end automation of background checks. Prospective employees must fill out an online form on the company’s website with all their contact information. The screening platform will then automatically generate all the necessary data.

Finally, cutting-edge technology, like artificial intelligence and machine learning, helps analysts’ mental processes by finding connections, deciphering their context, and raising precautions as necessary. Online sources for data collection include media, legal records, and a wide range of other sources.

Staying Informed about the Workforce by Monitoring

Once the employee gets employed, background screening technology enables you to move on to the next stage of employment screening. Post-hire monitoring is a necessity for many firms.

By routinely checking government exclusion along with the debarment lists, workforce monitoring technology automates the process of confirming your employees’ employment eligibility.

Conclusion

Since we checked how end-to-end automation helps Indian companies conduct background checks before hiring a new employee. The computerized background check process will make hiring easy and clear for recruiters. It will hold any disturbances and help recruit the best talent.

By automating crucial procedures in your hiring process, screening technology can help you save time, increase regulatory compliance, and improve candidate experience.

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How to set up a Systematic and Efficient Cash Collection System

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How to set up a Systematic and Efficient Cash Collection System

One of the pains every entrepreneur goes through is collecting payments or getting invoices cleared. For business growth, it is vital to have a proper cash collection process that will also improve the cash cycle. Customers or clients will not pay you on the scheduled timeline, creating issues. Implement collection strategies and best practices for cash collections in your company to make it more likely that you will get paid on time or early. Even though late invoices are very typical for many firms, you can still battle them. The key here is following the right process. You can strengthen your collection procedures to speed up payments and keep control of your cash flow.

This article presents you with the complete cash collection system to follow in your business for easy flow –

Table of Contents

Adopt Cloud System

Keeping track of bills and unpaid invoices for an accounts department and knowing when cash is coming in is a big job. Cloud-based services store all your data in the cloud, and you can access it online. They are not only safer, but many of them have anti-cybercrime safeguards in place. Maintaining all your data in the cloud also provides security against stolen hardware, such as during a robbery.

Also, even if your operating system gets broken, you won’t lose any data and can keep working. Keep all your accounting data in the cloud, where it will be safe and accessible.

Seek Payment in Advance

You know you are on the right track when you begin a new task or project with the knowledge that your cash balance will not be negative.

The best approach to preventing having to track down clients who postpone payments is to get paid upfront.

Is it likely that your customers will make a deposit? It entirely depends on their level of confidence in you. They will pay you the advance if you have been delivering the work on time. Offering a discount for early payment as an incentive can set a positive example. The risk of non-payment is decreased by advanced payment, which gives you peace of mind. It enables better budgeting and allows you to reinvest the money. When they are enthusiastic about the idea, make the biggest request before you begin working.

Setting up the Retainer

It makes sense to bill on a retainer. It benefits both you and your customers. Clients can more easily plan their budgets and balance their cash flow thanks to a retainer program. Look at the annual payments from your existing big clients. To get a monthly amount, divide that by twelve. Send them a proposal with a list of the services they utilize in a calendar year. Include a scope document that lists the services they will get for the monthly fee and any extra services that need a work order that has already been approved.

Reviewing your Policy of Billing Dates and Procedures

Ensure that invoices are sent out on time and contain all relevant information. While sending the invoice, provide the complete payment collection terms set by your company.

Some businesses have gotten paid faster by switching from billing customers twice a month to once weekly. Invoicing early in the month is also a great idea. If your invoice falls outside a company’s once-monthly check run, you will have to wait 30 days to get paid.

Make Payment Collection Process Handy

If you expect faster cash collection, setting up an effortless process is vital. Provide all accepted forms of payment. Make sure your invoices’ contact details and mailing addresses are correct for remittance. It will help if you rent a payment envelope with the appropriate remittance address. Use detailed invoices so the customer can pay and maintain a record of the invoice and payment. Use MFI and the banking system to make the collection of cash easy.

Automated Collection Process

Cash collection software is the best way to make things easy for both parties. Using software that has the feature of payment reminders can help in a large sense. The key managers will receive a weekly email from the cash collection software detailing overdue payments from clients and which accounts you should keep an eye on. It displays the number of consumers contacted or issued reminders, giving you advance notice if your collection attempts fail.

When money is tight, most firms divide their bills into “must pay” and “like to pay” categories. Your bill will be placed at the top of the “must pay” pile if you are a company that calls after a bill is one day overdue. If one of your clients has a reputation for late payments, it signals the regular period for cash collection.

Reminding Clients days before the Due Date

Most folks only call once the invoice is 30 days past due. That is a severe error. You should call a client for the first time three to five days before the invoice due date. Present the call as a customer service call to see how satisfied the client is and ensure that the invoice was received and understood. Obtain a commitment regarding the timing of payment.

Be prepared to address any customer service difficulties. When you try to keep customers from giving you money, they will tell you what is wrong with your service delivery approach.

Setting up Helpful Notifications

We receive constant notifications when we use different tools, including email and social media. The constant pings and alarm pop-ups can be annoying. They disrupt your concentration and take your attention away from your vital job. As a driven entrepreneur, responding to the bulk of notifications wastes time and energy. Additionally, useless messages drain your employees’ precious energy.

Some notifications, though, can be advantageous and assist you in saving time rather than wasting it. You can create alerts for specific situations by using cloud-based software. It allows you to stop constantly monitoring and checking in and assume everything is going according to plan until you receive a notification.

Use App to Stay Updated about Payments

Does your company spend excessive time monitoring late payers, following up with clients, and dealing with cash flow concerns brought on by missed payments? If yes, you need to invest in an application or service that can manage the payment process and keep you updated.

You can easily keep track of your unpaid bills with the aid of apps or services like MIMOIQ. Features include offering tried-and-true templates, flexible scheduling to organize your follow-up schedule, and an enlightening guide to assist you in making decisions.

Conclusion

Getting evolved with the cash collection process will help you keep going ahead. Set aside time to carefully analyze your cash collection process if you are serious about expanding your business and ensuring your crew is operating at the highest level of productivity.

You can improve your cash collection management and administration by using cloud-based technologies. These technologies can automate many boring tasks, saving time and effort. MIMOIQ is the best service provider for cash collection and settlements and makes things easy in the long term. A good money flow with effective invoice clearance will help keep the business running in the long run. It will further help to free up time for you to concentrate on tasks that will aid in the expansion of your business, such as marketing and new product development.

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What to Look for in a Cash Collection Software in India

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What to Look for in a Cash Collection Software in India

Cash collection software is becoming increasingly crucial for businesses in India. With so many options to choose from, it can take time to find the right cash collection software for your business. We’ve made a list of the most important things to look for in cash collection software in India so you can make an informed choice. By keeping an eye out for these features, you can ensure that the cash collection software you choose meets your needs and gives you the best value.

Table of Contents

User-friendly interface

 

When choosing cash collection software for your business, making sure the interface is simple and easy to understand is essential. It can be crucial when dealing with debt collection management. For your employees to be able to collect payments, they need to have access to a simple and easy-to-use tool. A user-friendly interface makes it easy for employees to enter data quickly and correctly, which cuts down on mistakes and speeds up the process. 

 It should also give helpful tips, alerts, and suggestions when information is entered so that the whole debt collection management process works well. Make sure you look at the software’s interface before making any decisions.

Advanced features

Debt collection management is an important part of any business and having the right software in place can make a big difference. When looking for cash collection software in India, it’s important to consider what features the system offers and how they will benefit your business. Here are some of the advanced features to look for when selecting cash collection software for your business:

 

  • Automated Reminders: A reliable cash collection software should have an automated reminder system that can send emails, SMS messages, or other notifications to remind customers of their payment due dates. This feature lets you stay on top of payments without manually tracking them.
  •  Scheduling: Scheduling features enable you to organize and automate your debt collection process. This feature allows you to set up recurring payments, schedule payment reminders, and create payment plans.
  • Reports: A good cash collection software should give you different reports that help you understand how your debt collection process works. Reports can include overdue payments, total collected payments, and average payment times.
  • Customizable Workflows: Customizable workflows let you make unique rules and processes for handling debt collection tasks for each customer. It ensures that every customer gets the same level of service and support from your business, no matter their situation.
  • Collection Management: A sound collection management system lets you keep track of all parts of the debt collection process, such as invoices, reminders, payments, and reports. You can also use the system to track how much money you have collected over time. It will help you figure out where your debt collection process needs improvement.

With these advanced features, cash collection software in India can assist your company in improving how it collects debts and gets the most money possible. Look for a solution with these features to get the most out of it and make your customers happier.

Integration capability

When looking for cash collection software in India, one of the most important things to look for is the ability to integrate. With an integrated solution, you should be able to sync your payment system with your accounting software and other external systems, such as CRM, customer data, and accounting. This way, you can ensure that all relevant data is easy to find and up-to-date, making data collection easier and more efficient. Integrated cash collection software makes it easy to match payments to invoices and track where payments stand. 

You will also be able to identify key trends in your collection data that could help you improve efficiency.

Security

To run a successful business in the banking industry, you need cash collection software that is reliable and safe. When choosing cash collection software, it’s essential to keep a few key things in mind to ensure your business runs smoothly and safely. Security is one of the most important features to look for when selecting cash collection software in India. To protect sensitive customer information and any cash you collect, you should add strong encryption and authentication to the software. Also, it should have features that make sure it follows local rules about debt collection management, such as the Payment Card Industry Data Security Standard (PCI DSS). If you choose software that meets all these requirements, you can be sure that your cash collection operations will continue to be safe and legal.

Pricing

Regarding cash collection software, pricing can be a major factor in deciding. But it’s important to consider more than just price when choosing cash collection software. It would help if you looked for features like debt collection management and automatic payment processing to get the most out of your software. Debt collection management lets you manage your receivables effectively and efficiently, and automated payment processing saves time and reduces the amount of data entry that needs to be done manually. Also, look for software that can help you track your accounts receivable with features like flexible payment options and analytics tools. These features will help you get the most out of your business, bring in more money, and keep things running smoothly.

Conclusion

Debt collection management can be complex, especially for businesses with a large customer base in India. To successfully get money from customers, you need to choose software that fits your needs and your budget. When choosing a cash collection software in India, look for the following important features: automated invoice creation, customer segmentation, customizable payment options, automated debt collection reminders, and analytics and reporting. With the right software and cash collection services from MIMOIQ, businesses can be sure that they can collect debts more quickly and correctly.

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7 Reasons Why Emerging Startups Should Invest in Background Verification Check

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7 Reasons Why Emerging Startups Should Invest in Background Verification Check

There is a completely new set of business models in India. India is known as a place where startups are increasing because the entrepreneurial spirit has taken hold there in a big way. Credit goes to investors, organizations, and crowdfunding initiatives; the ecosystem is currently seeing a massive wave of entrepreneurs. However, these startups face the vast roadblock of needing a spirit-oriented workforce. Since there is a strong correlation between the values and personality traits of the people hired for business development, employers are more concerned with the personnel they recruit. Background checks are essential to a business, and startups must catch up before hiring.

A new employee costs a lot to hire in terms of perks and pay and training them is an extra cost. When a protracted hiring process is nearing its conclusion, it can be tempting to conclude that the short-listed prospects are all so excellent that a background check isn’t essential.

It is tempting if you are a creative person who is okay with going against the norm or ignoring what you see as bureaucratic rules. Background checks are inexpensive, but there are many other ways they can save you time and money in the long run. Background verification companies have made things easy for startups to perform the activity. Using modern tools, they can verify the potential candidate and assist startups in hiring.

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The Need for Background Verification Checks for Investors

Even while the economy benefits from the vibrant startup scene, there are hazards involved with some sharing economy professions. Security threats are increased by the growth of contract employment, temporary labor, and shared models. There are growing cases of document or identity fraud involving office support staff that continue to grow, underscoring the importance of thorough background checks and applicant screening. Companies now demand personnel screening for startups, when historically, only workers were subject to background checks before recruitment. 

The best part is the technology boom happening in verification methods. With proper background checks, the startup can ensure investors that they are investing in the right workforce

Top 7 reasons to invest in background verification checks

Businesses must conduct these checks on every candidate screened for hiring. For startups, there are reasons why they should invest in these background checks-

Investors Need it

As mentioned above, investors want to be assured that they are investing in the right workforce for the startup. Most startups require a lot of networking and fundraising to be built; they rarely happen on their own. Investors want confidence that a startup is choosing wisely and safely in all facets of its business plan, including recruiting, before they invest their money in it. Background checks are crucial for assuring fundraisers and investors.

Transparent Hiring Matters

You don’t have the luxury of hiring a lousy employee for your startup, so you must invest in thorough pre-employment background checks. Since your company is in its initial stage, you may only hire a few employees. It is something that a background check cannot always prevent. However, these investigations may turn up information that enables you to discuss openly with potential hires and obtain a complete and accurate picture of their background.

If you find out that prospective employees lied about themselves, you are averting a crisis that would have led to dishonesty and deception at the core of your business.

Protect Self from Lawsuit

To safeguard itself against legal concerns, a startup must run background checks on candidates. No matter when the company hires the employee, it’s crucial to run a background check to determine if the prospect has any criminal convictions. It is particularly essential for startups because they are frequently more susceptible to legal action than bigger businesses.

You can prevent unfavorable legal repercussions by hiring someone with a criminal past by conducting a background check.

Validating Education and Personal Details

For a startup, it can be not very smart to hire an employee whose background verification, especially educational and personal details. Indeed, there needs to be more money at the beginning of a business venture to hire as many people as you want. Therefore, hiring people who satisfy various demands and skill sets is vital. It is where background checks come into play to simplify recruiting for businesses. Using background check services will help you to get the job done. They will verify all the shared documents and ensure you are hiring the right candidate.

Reducing Vulnerability

For a startup, negligent hiring lawsuits could prove costly, time-consuming, and detrimental. These are easily avoidable by running a routine background check on applicants. Startups may be more adaptable than established businesses but are far more vulnerable. Although startups rely on referrals and personal connections when hiring new employees, the business should use essential background check services for better understanding and reporting.

Reveals Complete Information

If you think you don’t care if your employees have a history of criminal activity; or present false educational and work experience reports because what matters is their contribution to your company, then you’re mistaken. It is crucial to consider what components of a criminal background check are vital to you—at every organization, not just your startup. Personalizing the experience and only requesting necessary information are intelligent practices.

Integrity is a crucial attribute in virtually any business, even for startups. Background checks validating an applicant’s claims about their past are essential. You can speak with your best candidate and gauge their response if the background check on them shows doubt.

The Pressure of Quality Output is High

All startups perform background checks on potential hires to hire and bring out the best in them. Employers should avoid hiring candidates who fake their information, as doing so could result in them being held liable for negligent hiring. However, because hiring procedures are costly and time-consuming, the only cost-effective conclusion is employing the appropriate person. They also aim to find someone who “fits” the role.

How to Perform Background Verification Checks?

The process of background verification checks takes around three to ten days. But it might go further if an employer wishes to dig into your history in more detail. Once you get it through the entire interview process, a business will often run your background. For your startup, you can check people’s backgrounds in a few different ways:

  • Companies start the background check process by contacting the most recent employer. They will contrast the details you provided with information from your former job.
  • Following that, firms look for indications of illegal activity in public databases (criminal records). To verify your degrees and certifications, they then check your academic records.
  • Lastly, companies will verify your address. Sometimes they even send representatives to the real world to check a candidate's address. Companies use Aadhar cards or any other government-issued ID for confirming addresses.

Background check services also use social media platforms if the candidate has an active profile. Social media allows employers to map your interests, affiliations, and actions easily. A hiring manager can imagine your personality without getting to know you.

Summing up

Every startup company is different in terms of business and methods of hiring, but the process of background verifications must be the same. By prioritizing background checks, you can build a solid foundation from which you can grow your new company. Choose a reputable background screening company to get the most out of your investment. MIMOIQ provides reliable, customizable screening solutions that stay up to date on the latest compliance protocols. Don’t wait until it’s too late; ensure you’re hiring the most qualified and trustworthy candidates for your start-up today.

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What is Employee Moonlighting? How to check for Dual Employment and Employee Moonlighting?

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What is Employee Moonlighting? How to check for Dual Employment and Employee Moonlighting?

Recently, many top IT companies found that half the employee workforce is moonlighting (working for other companies simultaneously). Many got fired, prompting a stern reaction from companies. Dual employment, commonly referred to as “moonlighting,” involves working two or more jobs concurrently. Employees have been found doing a lot of work for two different companies at the same time. It puts the company’s data at risk and costs the company money. This increase in employee moonlighting is attributed to most workers remaining in a hybrid paradigm after the COVID pandemic and working from home most of the time.

Under the guise of working from home, moonlighting workers lead parallel lives. Employers will inevitably need to be re-verified utilizing cutting-edge authentication technologies.

Table of Contents

Understanding the Concept of Moonlighting

In America, working a second job and a normal 9-to-5 job gave rise to the phrase “moonlighting.” Some people began engaging in their passions in their spare time, while others began looking for part-time jobs. People often had two jobs at once and took advantage of working from home, especially in the IT sector. Employees of IT companies who moonlight are not subject to any laws. Plant employees are not allowed to hold dual employment under Indian labor rules.  Numerous employers include in their offer letters that an employee may not hold down two jobs at once or should refrain from doing so while employed. 

Employees should avoid moonlighting in such circumstances resulting in losing their jobs.

Laws of Moonlighting in India

It is acceptable to work numerous jobs in India without breaking the law. Although many businesses impose such restrictions in their employment agreements in addition to regulations against holding down other jobs, a person with a similar set of jobs may raise concerns about a breach of confidentiality. Moonlighting might be seen as cheating if an employee’s contract calls for non-compete and is quite common with most conventional employment contracts. Below is the brief about the laws of moonlighting in India-

According to Section 60 of the Factories Act of 1948, a worker cannot work simultaneously at two places of business. However, the definition of a worker in the Factories Act does not include an IT specialist or any employee performing administrative or managerial duties.

The Industrial Job (Standing Orders) Central Rules, 1946, state that a worker is not permitted to work against the industrial establishment’s interests or accept any side jobs that would endanger the employer’s interests.

Present Moonlighting Policies in India-

While many top companies are opposed to employee moonlighting, some support it. Let’s examine businesses that support moonlighting:

  • Swiggy now permits moonlighting under some restrictions.
  • Nova Benefits encourages moonlighting and allows employees to explore new opportunities and follow their passions or interests beyond work hours.
  • C P Gurnani, the CEO of Tech Mahindra, said he could think about permitting moonlighting. He agreed that employees should be able to accept overtime pay, but they should be upfront about it.

How to check Employee Moonlighting?

It can be difficult to track down dual work if you don’t know where to look. Employers can find out if their staff members are doing a second job or moonlighting in a few different methods. The most typical method is to check with the employee’s previous employers or have a background screening done on the suspect’s job history. Many firms forbid employees from holding down a second job.

Therefore, it is the most reliable method to determine if an employee is engaged in dual employment. Peeking at the employee’s pay stubs is another technique to verify. The pay stub for an employee should indicate which employers are paying them. Here are some suggestions on how to look out for-

Using AI-Powered Dual Employment Tool

There are AI-powered tools that companies can use to search for dual employment. It can help with end-to-end tech platforms ensuring an easy workforce and reduced data loss. Moreover, it will further help in reducing manual efforts and costs.

Through EPFO UAN

Using UAN for dual employment verification is a quick and easy way to find out about a current employee’s work history. This dual employment check method yields reliable results in the shortest time.

The tech-enabled procedure is precise and data-driven. Employees are eligible for Provident Fund and Employer’s Provident Fund benefits in any industry. Ex-employer information is collected using the UAN number, and verifications are opened and closed by the data. When you provide UAN numbers, the team checks to ensure the client has no other employment during their current tenure. If there is any dual employment, the case is flagged.

Screening the Financial Records

As an employer, you can check the financial records of the employees. Employees may receive revenue from another employment if paid more than they should be given their position or hours worked. It would help if you enlisted the aid of a company that performs employment background checks for this step. Research further if you have reason to believe your business simultaneously employs an employee at another job.

Check their Social Media Accounts

Many employees, especially those having LinkedIn accounts, usually post updates about their employment. You can check their updates to know if they are engaged in dual employment.

Doing Background Checks

When hiring any candidate for your company, it is essential to do a background check. It will help you know if the candidate has a history of doing any dual employment. Hire an agency that does employment background checks using different tools.

Benefits of Checking Dual Employment Moonlight by Employee

Examining employee moonlighting and dual employment has several advantages for the organization. You can prevent potential complications and problems by doing this. Employees might be unable to give their full attention to either job if they are doing two jobs, one of which is in a completely unrelated field. It can result in productivity and caliber.

Consider a situation where a worker has two occupations, one of which pays significantly more than the other. In that situation, a problem might develop. The worker might feel more loyalty to the position that pays more and less loyalty to the other. Problems with job satisfaction and turnover might result from this.

Additionally, you can prevent any legal problems by checking for Dual Employment and Employee Moonlighting with employment background checks. For illustration, imagine a worker with two jobs, one of which is in a distant state.

Other issues like tax problems, immigration, and data issues can arise. By proper check of dual employment can bring down these issues. Again, you can prevent these potential issues by checking Employee Moonlighting and Dual Employment.

Conclusion

The issue of employees moonlighting is delicate and complex for businesses to handle. The lack of clear legislation in this area makes it even more flexible to one’s interpretation. From the general population’s perspective, this is appropriate and fair. However, businesses or organizations don’t operate on the ideologies of good and wrong. There are laws, rules, and contracts to govern it. Which, if absent, can result in a chaotic, poorly managed setting.

By reducing these risks to a minimum, you can guarantee the smooth operation of your company. Working with background checks and pre-employment services will help you run your business smoothly by being aware of the law and taking precautions to look out for these behaviors. Use the right service to do the job perfectly and help you with background checks and dual employment threats.

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How Remote Work is adding a Whole New Perspective to Background Checks?

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How Remote Work is adding a Whole New Perspective to Background Checks?

Right after the pandemic, the entire employee onboarding process changed 360 degrees. Hiring remote employees has significantly shifted from screening to a background check. According to an EY Forensic and Integrity Services report, digital changes are becoming a significant part of employee background checks. In a study of more than 115 top HR executives from companies in India and worldwide, 68% said it was hard to do background checks when the workplace was on lockdown. In contrast, just 32% used technological tools as an alternative to conducting checks.

Suppose an employee makes a mistake because you didn’t do enough screening; you, as the employer, will be held responsible. You may limit access to information needed for background checks in some places. As a hiring team member, you need to ensure that every possible employee goes through a background check. This check will help you determine whether someone has lied about their work or school experience and whether they have a criminal record. This procedure is just as crucial for remote workers as for those who work in person.

Background checks are necessary for remote workers, but they also present challenges. Here is how – 

Table of Contents

Competency

With the hiring process shifting online, candidates now find it simpler to cheat on online tests. Fake diplomas and experience certificates are increasingly more frequently used, but this is nothing new.

In an EY Forensic & Integrity Services survey, 96% of respondents said that up to 10% of background checks on current or potential employees failed. You can stop this trend by using technology to digitize records and test candidates ahead of time. So, it’s essential to use the modern way to check someone’s background. Using the right tools makes sure there are no fake documents.

Encouraging Stealing of Company Data

With remote hiring and working, data security is also in danger. Part of the job is giving employees access to company data from home using their networking equipment. When an employee accesses data remotely rather than simply in the office, there are many additional ways for the organization’s security and systems to get compromised. Businesses also need to think about a worker’s home, where unauthorized people could try to log in or even steal important company information. If the employee’s background is properly checked, it’s easier to ensure your company’s data is safe.

Moonlighting

In recent times, there have been many cases of employees moonlighting. Many top companies have fired employees for continuing to moonlight. The present controversy around moonlighting is not without merit. In remote workplaces, there have been times when workers missed online meetings because of technical problems or personal issues. It made the bosses wonder if they had another job. Through a PF transaction, careful background checks on potential recruits showed they were working two jobs simultaneously.

Also, if many people apply for remote jobs simultaneously, it raises questions about their skills and commitment. In the new normal, background checks must also deal with the situation when a candidate’s resume is quiet about these brief assignments.

Things you should know about background checks for remote workers

Running background checks on remote employees presents quite a challenge! Typically, you would sit across from a new employee’s desk and ask them to sign a waiver allowing you to run their background check. But if that person works from home, problems arise quickly, like “How do I know if the candidate is signing the waiver?” How can I verify that the candidate I’m recruiting is the real thing? Some of the concerns are –

Risks in Hiring Remote Workers

As mentioned above, there are certain risks involved with remote workers when there are no background checks. The worker may misuse the company data while sitting in a remote area. Employees that work remotely have much greater access to your system than those who can only access it when in the office. It would help if you also considered visitors who might be there because they might try to log in or even listen in on private corporate or client information.

Is there any need to redo the Background Check when the employee has been absent for a long

Employees who are gone for more than a month must undergo the same process as new hires. Often, background checks can catch employees doing something wrong and lower risk even in normal situations. Furthermore, if you had the necessary approval when you first employed the individual, that waiver might still be valid if you do another criminal background check. To be safe, review any potential time restrictions in the waiver once more.

Points to consider when doing background checks of remote employees -

Consider State Laws regarding Background Checks

Background checks are essential for hiring remote workers because they help the hiring team ensure they are working with the right people. But you need to know about certain laws, so you don’t get in trouble with the law in the future.

Considering the cost of Bad Hiring

Poor recruitment will always affect an employer’s reputation, whether they are working in the office or remotely. If a remote worker’s background is checked, it could save the business money in onboarding and training costs, turnover costs, and the costs that could come from hiring without being careful. Ensuring all workers have been thoroughly vetted, no matter where they are located, helps protect the investment a business makes when adding a new team member.

Remember, it's your responsibility completely

As an employer, it is your responsibility to make sure they are hiring someone who does not pose a threat to the corporation and keeps those team members engaged, regardless of whether they are local employees or remote workers. An employee may file a negligent hiring lawsuit if another employee causes them harm, and they can demonstrate that their employer did not adequately screen that individual. It also applies to employees who work remotely. If everyone isn’t given a thorough background check, the employee who filed the complaint may be able to get money from the court.

Expanding Job Qualifications

When hiring remote workers and doing a background check, you should look for more than just the typical job requirements. To locate the best candidate for the post, fine-tune the position’s ideal qualifications. For example, if you’re hiring someone for an online teaching job, do they have the skills or qualifications to make training materials just for an online audience? The job posting should consider the vast differences between an online and classroom environment.

Also, think beyond the box to learn more about the candidates. Do they, for instance, engage in activities or obligations outside of the workplace that reflects a self-starter personality type? Working remotely necessitates a higher degree of initiative and self-discipline.

How can MIMOIQ help with the background checks of remote workers?

Hiring a remote worker is quite challenging, especially when doing a background check. This is when you need a professional company that can undertake the job. MIMOIQ does the check professionally.

MIMOIQ, using modern tools and an experienced team, can look up anything, including verification checks, background checks, and others. Following every report from a background check, you get real-time updates.

The team integrates different tools with your business during the background check process to ensure you get the correct result. Our model for background checks gives better, faster results and keeps a direct line of communication open.

Summing it up

Every organization has been caught off guard by remote work. Because of changes in technology and workflow, the traditional office environment and business have changed a lot. Proper background checks on prospective employees can help the company run smoothly.

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Things to consider when choosing the right Cash Collection Software

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Cash Collection Software

Things to consider when choosing the right Cash Collection Software

Selecting a cash collection management system can take time and effort. Whether you’re carrying the load alone or working with other departments, in either case, research, time, and action are needed.

However, a collection management system is essential to maintaining your AR collection, whether you are making your first purchase or switching from your current system. The exemplary system makes your employees more productive, reduces frustration and wasted time in the company, and shows your AR to a wider range of people. Your time spent finding answers will ultimately be worthwhile.

Most organizations use various software tools to keep their back and front offices working smoothly. Even if you already use customer relationship management (CRM) and enterprise resource planning (ERP), you may still need a tool to help you collect a debt.

Table of Contents

Why do you need cash collection automation software?

Every company’s account receivable (AR) department faces the difficult task of collecting unpaid debts. This laborious process, one of your company’s most crucial aspects, might seem intimidating. Some primary reasons why cash collection automation software having are the best investment for a business 

  • Ready Account Information - The best part of using the software is that all account-related information is readily available. Your collectors will spend vital time communicating with customers rather than collecting cash.
  • Keeping AR Department on Track - Using the software, the account receivable department will get real-time information about the money that is still owed. So all users of the tool stay updated.
  • Less Error - Most of your clients want to pay you, and they want to pay you on time. By improving your invoices, you can reduce mistakes, ensure clients get their orders on time, and make them happier.
  • Streamlining Accounts - Accepting other forms of payment, such as debit/credit cards, checks, and more, will help you streamline accounts receivable even further.

Consideration when choosing debt collection software -

MFIs, banks, and financial companies are now investing in debt collection software, making the process quite handy. So, when you are considering the collection software, there are a few things you need to consider-

Skills of users

It would help to consider how frequently and with what level of expertise your team will use the tool. People who need to learn more about cash collection may want a simple program with functions that are easy to understand, especially in an accounting office where cash collection is only one part of the job. It is vital to ensure that the tool’s team has the skill to run it appropriately. On the other hand, if you are choosing software for a debt collection agency, you may find that such streamlined systems need to be expanded, and you need to look for a more complete debt collection software package.

Has Complete Features

To make the software more user-friendly, it should have a full feature on its collector dashboard. The tracking and management processes are essential. Make sure you pick a system that communicates information in a way that is both helpful and understandable. A good software program for collecting cash can update and organize data from many different files quickly and easily, giving you quick access to critical information.

Doesn't Create Work Overload

Businesses are terrified of implementing new tools because of the workload involved. People often think implementing a new way of working will take a long time because everyone in the organization needs to learn how to use the new technology. Additionally, some people worry that their staff will feel overloaded by the wide variety of tools available and that the company will wind up underutilizing such a potent tool.

But as part of your plan, buying software to help you manage cash collection is easy and simple. With the help of products like ours, internal collection agents can immediately become more independent of IT departments.

Check the Price

Price is something you need to consider. A cheap bundle is only worth the money if the system is reliable. Instead, start by looking for software that will meet your demands, then evaluate the prices of these options. Then, before making a purchase, think twice about adding a luxury program with eye-catching features that you won’t use. You can find savings by shopping, so get in touch with several suppliers to compare pricing.

How can cash collection management help you?

Using cash collection management has wider benefits for the company. Once you install the right tool, things are more accessible than before. Some of the ways how cash collection management will help you are –

Completely Automated Revenue Process

Using an automated revenue recovery method, you can reduce the amount of money you lose from declined transactions and bad debt. Businesses frequently find it more challenging to collect past-due invoices as their customer base increases. Using the automated process, you can make the customers’ experience easy by accepting credit cards and other payment methods and setting up QuickPay landing sites.

Your team won’t have to wait in lengthy call lines during business hours or manually enter a link found on a letter. Customers seek a quick fix and have an underlying desire for action and control. When they can make a payment, they want to feel free to do so without having to endure lengthy procedures.

Centralizing Debt Collection

The degree to which cash collection software integrates and centralizes a collection strategy can significantly improve how things are done. In an organization, there are many distinct types of debt, which can make operations challenging. For instance, you might owe several consumers money to various departments or for services. It results in a complicated paper trail when applied to businesses with huge employees, including local customers who handle their sales and accounts.

You can make a more effective plan by putting all of these accounts in one place, which you can do with cash collection software. Having all your data in one location will allow you to establish centralized debt collection and make decision-making easier.

Mitigating Debt Collection Problem before arising

Debt collection software can use artificial intelligence and information about how people act to rate consumers and spot possible risks before an account goes into the collections cycle.

For example, the software can use digital marketing KPIs to find clients who have ignored or been slow to open emails and texts sent at the beginning of the customer journey. It means mistakes are possible, which could be a problem for people who want a certain strategy. Having this kind of insight in your arsenal makes it possible to personalize the customer journey based on a person’s circumstances.

You might even alter the channel and communication tone using the information provided. You do this by making a goodwill gesture, such as waiving payment due dates and contrasting the situation with the status quo by evaluating what your rivals would do in the same situation.

Identifying possible credit risks and problematic behaviors before they manifest allows you to leverage data and technology to your advantage and provide a rich, satisfying client experience. Financial hardship and busy lifestyles are commonplace in the modern world.

It is Adaptable

Being adaptive is a vital component of any cash collection software. It would help if you had software that could scale to meet the needs of your business. Invest in a tool that can test how well the different touchpoints in the collection’s journey work as you put them in place and make the necessary changes.

Adaptive cash collection software for businesses will not only compile data and quickly identify potential payment issues before they occur, but it will also function in a way that will minimize conflicts with no additional work on the user’s part.

Summing it up

Once you know the features, benefits, and methods of choosing cash collection automation software, it becomes easy to invest. MIMOIQ is the leading company that helps in cash collection using the right tool. The cash collection service by MIMOIQ safeguards your deposits and helps to maximize the cash flow. Connect now and lower your risk of cash collection fraud.

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How can Cash Collection Automation Software keep you out of Trouble?

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Automate Cash Collection Process for your Business

How can Cash Collection Automation Software keep you out of Trouble?

Every organization has a cash collection team that controls incoming and outgoing cash daily and other accounting work. The cash collection process cycle starts as soon as a customer orders. The collection team must update the daily transaction accounting database while maintaining the security and privacy of financial records. Manually doing this process will take more time and be prone to error.

Understanding the challenges in the cash collection process and addressing them with optimal solutions is essential. Many organizations seek help from technology, as technology saves business from many challenges in the modern market. Cash collection software can save the collection teams from various problems.

Table of Contents

Challenges faced by cash collection teams

Here’s a list of common problems that a cash collection team faces during the cash collection process.

Poor cash visibility

Organizations require high cash visibility to make decisions. An efficient collection process can result in high visibility. Also, data distributed across ERPs, TMS, sales order systems, and bank portals limits visibility. Low cash flow visibility can also reduce the accuracy of the projection, making it difficult for companies to make effective decisions.

Lack of security

Companies that perform cash collection processes manually are at more risk of cyber threats. Since manual systems lack data encryption that prevents hackers from getting into your system, you should protect the sensitive data your customer shares during a transaction, so your customer, business partners, and merchants maintain trust in your company.

Slow speed

Manually processing the collection is time-consuming. If you can speed up this workflow, you will avoid hitting delays or failing to capitalize on early payment discounts. Sometimes, companies need help keeping up with the payment due dates and loan collections. For instance, banks and money lenders face the problem of bad debt due to the slow speed of the cash collection process.

Higher borrowing costs

When a company gets money late from their customer, they must pay a higher interest rate to banks for borrowing their money. It can reduce the profit of a company significantly.

Lack of data analytics

Improper use of idle cash and increased cash buffers can result in a loss of opportunities in value creation. The cash collection team can only access cash for investment when they know how much money they have. Hence, the collection team must track the money flow to check for potential errors and maintain visibility during the transaction.

How does Cash Collection Automation Software help in the cash collection process?

Cash collection automation software can address all the problems that may arise during a cash collection process. Automation software offers the following benefits to an organization:

It enhances control over cash and working capital

Knowing your cash position and improving the cash collection process improves working capital. With the help of automation software, you can manage your working capital more effectively, which helps you get insight into what you need to make strategic investment decisions, like hiring new employees, purchasing capital equipment, and expanding your workplace. Improving your invoice collection process helps you invest in the right place to help you grow your business, and your organization still has more cash on hand after investment.

It shortens the sales to the payment cycle.

Generally, manufacturers or distributors need to pay for the cost of labor and inventory when producing or distributing a good or service. When a service organization invests in the raw material and resources to provide the service, they need to collect cash for their service and product as soon as possible. Automating software means you don’t have to worry about creating sales orders and invoices. It also sends the invoice to respective customers automatically. It also allows your customer to pay you via various modes, including credit cards, ACH, and more.

It lower bad debt risk

Many banks suffer losses from bad debts because the organization knows the customer will not pay them. It happens because the cash collection team cannot collect cash at regular intervals. Several other reasons also lead to delays in Loan collections. Collecting software can help the collection team to stick with a definite schedule of collection tasks and generate daily tasks for employees to keep up with workflow. It helps collect debt more quickly and reduces the risk of bad debt.

It improves your cash position

Knowing how many bills you must pay helps you understand your cash position. Pay your due bills to avoid owing more money than you are taking in. It would help if you focused on utilizing the best cash collection practice, reminding your customer to pay, providing customers with easy ways to pay you, and identifying invoices earlier in the process. Some automation software comes with a statistical cash forecast based on your customers’ payment history. It helps you know whom and where to receive cash soon.

It improves customer communication

Communication with your customer is an important part of the business. Cash collection automation software makes it easier for you to communicate with your customers. It allows you to review the necessary information about the customer, like account information. It also helps you create emails, attach invoices, log phone calls, and create mail merge documents. Automation software stores every communication with customers for future review and analysis.

It makes the cash collection process efficient

The cash collection process is time-consuming and inefficient because it is performed manually. The account managing team has to call each customer required to pay their company. Other factors also affect how much time you need to resolve issues with your payments. Companies using automated cash collection software can organize and automate mundane tasks. It helps reduce time spent on managing disputes, prioritizing, and preparing fo4 calls. It provides more time for your team to solve customers’ payment issues.

It minimizes administration costs

Automation software is designed to automate every activity that shouldn’t require human intervention. In the banking industry, organizations have to generate task lists for employees which requires a workforce. However, automation software can save banks from paying high administration costs by shrinking the size of the cash collection department. The collection software automates most of the process, which increases efficiency and minimizes the company’s administrative costs.

It improves customer service and satisfaction.

Sending an invoice early to your customer helps them pay you on time. However, it is common for companies to face problems with their customer invoice, such as missing or incorrect purchase orders. Resolving the issue with your customer invoice as soon as possible help provide your customers satisfaction. An automated cash collection software can automate invoice delivery to customers and alert you to problems with invoices and offer practical solutions. It helps you serve your customer better with fast and improved service.

In Conclusion

A smooth cash flow is essential for any organization. You must get paid on time to avoid a situation where you owe more than you are taking it. Slow speed, human error, lack of data analytics, and inefficient payment methods are common problems that a cash collection team face. Fortunately, automation software is a perfect solution that can address all the issues of cash collection and save you from getting into trouble.

MIMOIQ offers excellent cash collection solutions and helps organizations collect money faster, reduce bad debt write-offs, increase the economy, and maintain good customer relationships. You can choose from multiple cash collection models that suit your business needs.

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How to Automate the Cash Collection process?

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Automate Cash Collection Process for your Business

How to Automate the Cash Collection process?

For any organization, the collection process is incredibly mundane. The team that supervises this process has to spend an hour, and this process also makes the team unmotivated to complete their work each day.

Cash collection is an essential part of any organization. The cash collection management team has to send endless reminders via email, phone calls, and more to clients who forget to pay you. Using technology, you can improve your business’s overall collections experience while boosting your team’s morale.

Here, you can learn how automated cash collection improves cash flow, minimizes invoice query times, and reduces debtor days.

Table of Contents

What is the cash collection process?

A cash collection Process is whereby an organization recovers cash or due payment from other businesses or customers for whom it has previously issued an invoice. The primary function of cash collection is to receive invoices paid on their due date.

The process also manages new payment settlements or credit terms. New payment settlements are essential as it saves companies from doubtful and bad debts. Moreover, a company with massive volumes of payments means more manual work, and it can result in a time-consuming and arduous process. It affects the overall productivity of the company

Why should you automate the cash collection process?

Many companies are implementing an order to cash Automation Software in their organization to speed up their cash collection process. With an automated cash collection process, you can receive payment faster from your customer. Your cash collection team needs to be faster to remind customers of the importance of timely payments, and their pending payments will pile up. The automation software has automated reminders that remind your customers about their past due. It uses an automated email sequence that reminds all the customers at once.

Cash flow problems make it difficult for businesses to pay their staff, supplies, and creditors. It hurts your creditworthiness, causing more problems in your business. An automated cash collection makes the accounting process less troublesome and reduces the chance of any error. With less time, your team can focus on maintaining the organization’s financial health.

Automated software also allows your team to access documents from anywhere. The software uses cloud-based platforms that enable access to accounting data on various devices from any secure location. It helps your business keep moving forward even in case of any disturbance.

If you think that your data is unreliable, you can’t make the right decision and lose your clients and customers. To provide accurate products and services, you should focus on accurate financial reporting. With the automated cash collection process, you can remove the error likely to happen because of

humans. It helps in making data more accurate. It also enables you to analyze the data, spot new trends, identify challenges, and instantly find solutions.

Ways to automate the cash collection process with automation software

Generally, you can automate your organization’s cash collection process with the help of automation software. However, many things, such as the software’s features, your business requirement, and more, help determine whether the software works for your business or not. Hence, you will need some tips while automating this process to have effective solutions. Here’s a list of ways that allow you to automate your cash collection process, including:

Use AI-based OCR Engines

Your cash handling team should use AI-based OCR engines to reduce the dependency on bank lockbox key-in fees by offering accurate capture of check stub information. It also reduces or eliminates the reliance on in-house resources. When looking for automation software services, ensure that the provider offers this feature.

Identification and Application of Reason Codes for Short-Payment

Sometimes, customers make short payments but need to share the reason code information. It causes me to generate invoices for the same item twice. Choose a software that offers a feature to identify short payments and map the customer-provided reason code to the internal reason code. It helps reduce the error on an invoice.

The capture of Remittances from Various Sources

Automated Cash collection requires software that captures remittance details from various sources, such as emails and attachments, web portals, EDIs, and more. Customers send remittances in multiple formats, including PDFs, JPED, XML, HTML, CSV, PNG, Excel, and more

Automatic Linking of Payments and Remittance for Online Transaction

People send remittances through EDIs, emails, and web portals. It makes it difficult for a team to extract these remittances and map them to the incoming payments with proper payment data, invoice numbers, and more. To avoid exceptions, you should implement automation to link payment and remittance files for online transactions.

Open Account Receivable Invoice Matching and Exception Handling

When a person works manually for an accounting process, the risk of error is high. The team may find these issues, such as incorrect invoice numbers or missing remittance information. 

It can cause delays in cash posting, so you should prevent these problems with the help of Automation Software. Use AI-based software that automates matching invoices to payments, even in exceptions.

Post Cash Directly to Your ERP

You should ensure that your software features output file generation that is compatible with any ERP system. Your software should be able to create files in various formats, including EDI, BAI, and other formats. Having software that works well with your ERP system helps reduce the manual effort to recognize the file and streamline the cash posting to the ERP system.

Study Performance Metrics and Report for Better Insight

Monitoring the cash collection process metrics helps the organization to analyze the performance of the cash collection process. It will help if you implement software that displays the day-to-day activities and analyzes KPIs. It helps organizations to make further decisions based on accurate information.

Use AI and Machine Learning

AI and machine learning algorithms help solve any challenge while using automation software. The software featuring machine learning allows it to learn about your organization independently. It saves time manually putting information about the customer’s invoice number and other data.

Identify and handle Complex Parent-Child Relationships.

Parent-child relationships make mapping payments of customers challenging. Sometimes, an organization posts sales invoices on a parent account level but deducts at the child level. You should get software that can identify and map parent-child relationships in the customer to eliminate the exception during cash posting.

Auto-match Customer' Open Invoices with Incoming Payments

The cash collection software should be able to auto-match the payments from their customer to their open invoices. This process, also known as customer identification, helps the AR team to verify the account numbers when customers make payments.

The Final Word

Many ways are available for your business to automate its Cash Collection Process. When you look for a solution, make sure that it can make your team more efficient and offers your consumers a smooth transaction experience.

With MIMOIQ, you can get trained professionals to handle the entire collection. They also help reduce the risk of fraud, theft, and cash mismanagement. You can choose multiple models, such as doorstep pickup, cash collection point, etc., that meet your business needs.

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