WHAT DOES A COLLECTIONS MANAGER DO?

Updated: Dec 01, 2024 - The Collections Manager develops and implements effective strategies for debt recovery and customer delinquency resolution by leveraging advanced data-driven tools. This role involves optimizing collection performance through enhanced system capabilities and innovative techniques such as alternative scoring and contact strategies. Additionally, the manager establishes robust relationships with external debt collection agencies and directs the Collections Team to maintain high performance in ongoing debt recovery efforts.

A Review of Professional Skills and Functions for Collections Manager

1. Collections Manager Duties

  • Strategy Execution: Execute and contribute to strategies for the Collections team to meet and sustain performance to hit the company's portfolio targets.
  • Process Automation: Assist in developing and implementing more automated and scalable business processes around managing the Company’s subscription accounts.
  • Quality Improvement Planning: Develop and deliver an operational quality improvement plan resulting in a highly predictable and effective collections experience.
  • Collections Management: Manage collections processes, working closely with Billing Operations, Customer Success, Sales, and customers to resolve customer payment issues.
  • Delinquency Resolution: Identify issues attributing to account delinquency and consult with Finance on a regular basis regarding past due invoices and appropriate course of action.
  • Financial Reporting: Report and work closely with organizational leaders to ensure collections balances are maintained at an acceptable level, including review of monthly aging and Days Sales Outstanding (DSO) reports.
  • Debt Assessment: Assess bad debt write-offs and the booking of allowance for doubtful accounts.
  • Team Supervision: Supervise the daily activities of a team of collectors, ensuring efficient and effective processing.
  • Contract and Billing Review: Review customer contract terms, other billing-related terms, invoices, and billing schedules.
  • Payment Tracking: Oversee the tracking of collections for all non-automated cash payments and validate that payments were appropriately applied to customer accounts.

2. Collections Manager Details

  • Strategy Development: Develop and execute Collections and Recovery strategies by leveraging data-driven tools.
  • Performance Maximization: Maximize resolution and cash collected from delinquent customers.
  • System Optimization: Optimize Collections performance by maximizing system capabilities and introducing new tools and techniques like Alternate scoring/contact strategy.
  • Risk Management Advisory: Advise feedback loop to Credit and Product to improve risk strategies.
  • Team Performance Management: Manage peak performance of the Collections Team for ongoing debt collection efforts.
  • Agency Relationship Management: Develop an effective relationship with multiple external debt collections agencies.
  • Portfolio Monitoring: Track performance of the portfolio and plan a course of action to recover outstanding payments.
  • Negotiation: Negotiate payoff deadlines or payment plans with the help of the Collections Team.
  • Complaint Resolution: Handle questions or complaints as and when escalated by internal teams.
  • Discrepancy Investigation: Investigate and resolve discrepancies in payments or accounts.

3. Collections Manager Responsibilities

  • Strategic Planning: Define department objectives and contribute to the overall execution of the Collections strategic vision.
  • Team Management: Participate in hiring, performance management, and development activities of the Collections team.
  • Operational Improvement: Develop and implement improvements in policy, process, and tools to increase the effectiveness of operations.
  • Workflow Oversight: Manage workflow, account assignments, account onboarding, problem resolutions, and resources for the team.
  • Performance Targets: Meet organizational quality scores and achieve accounts receivable operational goals, i.e., Days Sales Outstanding (DSO), Past Due Percentages.
  • Training Partnership: Partner with trainers to close team member knowledge and skill gaps.
  • Issue Resolution: Resolve critical business issues through collaboration with business partners, leadership, and customers.
  • Financial Management: Understand and manage department Profit & Loss (P&L).
  • Knowledge Enhancement: Continually expand and increase personal knowledge of Accounts Receivable and industry changes or trends.
  • Leadership: Perform managerial responsibilities including leading and motivating the team.

4. Collections Manager Accountabilities

  • Adherence to Guidelines: Ensure District Credit Manager guidelines are adhered to and maintained.
  • Review Collection Activities: On a regular basis review a sample of the collection activity made by each District Collector as well as one-on-one reviews of daily functions.
  • Direct Account Management: Personally call delinquent accounts and manage the Collector’s portfolio as needed to maintain satisfactory accounts receivable results.
  • Quality Assurance in Collections: Ensure the required number of collection calls are being made and that the quality of the collection calls and notes is acceptable.
  • Support Sales and Account Resolution: Provide service and support to District Credit Management and the Field Sales organization to support sales and solve account issues.
  • Optimize Resource Management: Evaluate and enhance Division treatment schedules to effectively manage human resources, account management, and cash flow.
  • Management Reporting: Provide reporting to management.
  • Supervise and Train Staff: Direct and supervise multiple employees (including training as required) in the performance of job functions.
  • Recruitment for Collector Positions: Facilitate and conduct the interview process of candidates for District Collector positions within the Division.
  • Oversee Collection Efforts: Oversee all aspects of the collection and recovery efforts and initiate programs and procedures to adjust to the changing economic environments and new product initiatives.

5. Collections Manager Functions

  • Policy Optimization: Analyze the performance of and recommend changes to collection policies and strategies to reduce delinquency roll rates and losses.
  • Data Integration: Incorporate bureau and other external data to further enhance the credit strategy.
  • Strategy Implementation: Work with the Collections operations team and other key stakeholders to implement collections strategies, including process improvements and technology enhancements.
  • Reporting and Communication: Develop effective Management Information (MI) reporting for and communicate the impact of collections strategies and initiatives.
  • Cost Reduction: Identify areas to reduce the cost of collections without negatively impacting collections performance.
  • System Management: Ensure appropriate systems and infrastructure are in place to track, evaluate, and support collections strategies and tests.
  • Industry Research: Research industry best practices and make recommendations accordingly.
  • Team Collaboration: Establish collaborative relationships within the cross-functional team to advance collections strategies.
  • Recovery Strategy Development: Develop and recommend workout strategies and collateral/credit enhancements, and monitor tracking systems for all bankruptcies, suits, foreclosures, and other post-charge-off activities.
  • Leadership and Support: Provide leadership in the servicing of members with past due accounts to offer account holders appropriate assistance leading to financial wellness.

6. Collections Manager Job Description

  • Time Management: Ensure all time has been entered for PTO, ESL, etc.
  • Task Assignment: Create team assignments based on the number of accounts to be worked for each facility.
  • Performance Evaluation: Complete any evaluations which are due for the current month.
  • Evaluation Timeliness: Ensure evaluations are completed two weeks prior to the due date to receive appropriate approvals.
  • Staff Development: Schedule and participate in quarterly one-on-one sessions with Collections staff.
  • Policy Implementation: Implement policies and procedures for new processes.
  • Training Development: Develop training materials for new processes and attend continuing education seminars.
  • KPI Monitoring: Implement reporting and monitoring of Key Performance Indicators.
  • Operational Enhancement: Enhance the operations of the department through reporting analytics, process improvements, and automation to increase collection effectiveness and employee productivity.
  • Credit Risk Analysis: Perform analysis on the credit risk of the loan portfolio by reviewing delinquency trends, identifying credit risks, and making projections.

7. Collections Manager Overview

  • Approve Adjustments: Review, process, and approve adjustments/refunds daily.
  • Manage Voicemails: Ensure voicemails have been pulled from the phone system and return calls were made.
  • Coordinate Payments: Coordinate payments received at CSO for deposit or facility processing.
  • Resolve Account Issues: Work with staff and facilities to resolve any issues with accounts and/or processes.
  • Address Conflicts: Immediately address any personality conflicts between personnel whether it is within the department or with facility staff.
  • Approve Time Off: Approve time off requests and ensure coverage based on workload.
  • Research EOBs: Research missing EOBs for EFT payments.
  • Analyze AR Reports: Review facility AR reports to identify Payer trends and provide updates to the Get Well Plan.
  • Manage Patient Statements: Ensure Collectors have processed and exported files for patient statements to the electronic clearinghouse for printing and mailing.
  • Monitor Payer Rejections: Review Payer Rejections in Zirmed at least three times weekly to ensure Collectors are working appropriately.
  • Approve Time Cards: Review and approve time cards for the pay period.

8. Collections Manager Details and Accountabilities

  • Staff Training & Development: Hire, provide orientation, and train staff.
  • Performance Management: Evaluate employee job performance, counsel, and discipline.
  • Record Keeping: Establish and maintain personnel records and conduct team meetings.
  • Policy Management: Maintain current policies and procedures.
  • Team Environment Management: Maintain a positive, fun, goal-oriented team environment.
  • Collections Oversight: Responsible for all collection activities and ensure timely cash flow.
  • Daily Operations Coordination: Conduct a daily huddle with staff to discuss timelines and any issues with meeting required deadlines.
  • Workflow Management: Manage the workflow in collections to ensure staff are meeting department deadlines.
  • Supervisor Auditing: Audit the CISCO desk Supervisor to ensure all collectors are handling calls and managing time well.
  • Quality Assurance: Audit productivity reports for accuracy and perform audits on worked accounts to ensure Collectors are meeting quality standards as well as following policy and procedures

9. Collections Manager Tasks

  • Manage Collections Team: Manage a group of seasoned collectors to meet or exceed targeted collections metrics, reducing past dues, bad debt reserve exposure, and other quantitative targets.
  • Provide Management Accountability: Provide management accountability, oversight, and support to the collections process and portfolio management effectiveness.
  • Escalate Collection Issues: Escalate major collection issues with Upper Management that may require special attention/support.
  • Ensure Policy Compliance: Responsible for the day-to-day execution and compliance of the company’s local and global collection policies, procedures, and ways of working.
  • Maintain Exceptional Directives: Ensure directives are followed and exceptional actions taken as a result to remediate a mistake remain an exception and escalated.
  • Interact with Stakeholders: Frequently interacts with customers, and/or functional peer group managers, normally involving matters between functional areas, other company divisions or units, or customers and the company.
  • Lead Process Improvements: Lead the development and achievement of continuous process improvements through the application of lean tools and methodologies.
  • Drive Team Culture: Drive a lean performance team culture.
  • Coach and Mentor Staff: Coach, mentor, and lead support staff to best-in-class performance.
  • Manage Clerical Tasks: Manage the team with regards to invoicing, collections, and query management to ensure that all clerical tasks are carried out in a timely and accurate fashion.

10. Collections Manager Roles

  • Supervise Collections Officers: Directly supervise the collections officers and provide proper support, sufficient resources, appropriate feedback, and fitting rewards.
  • Implement Collections Controls: Implement controls for the collections processes and appropriately track collateral.
  • Manage Third-Party Collections: Manage third-party partners in collections, repossessions, foreclosures.
  • Manage Attorney Relationships: Manage attorney relationships regarding foreclosures and bankruptcies.
  • Minimize Delinquencies: Reduce/minimize/contain delinquencies and charge-offs through innovative approaches and process improvements for loan workouts.
  • Monitor Loan Portfolios: Identify potential for losses by monitoring loan portfolios and taking/recommending remedial action.
  • Escalate Credit Risks: Identify and escalate credit risk-related issues and trends to senior management.
  • Monitor Watch List Loans: Monitor the watch list loans and provide reserve estimates for those loans.
  • Present Delinquency Reports: Prepare and present monthly delinquency report to senior management.
  • Provide REO Information: Provide REO (Real Estate Owned Properties) information to the Accounting Department.
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