Recent research in the UK commissioned by BACs payment Schemes (BACS), the electronic payments clearing facility, suggests that there is a massive increase in the amount of money owed to small and medium-sized businesses throughout the country. For 2008, the figure stood at almost £26 billion ( yes - billion) in overdue payments. This colossal figure represents a 40% increase over 2007.

In the current economic climate, things are likely and inevitably going to become much worse, as companies respond to cash flow difficulties by delaying payments. Often these tactics are aimed at those least equipped to respond positively and clearly to any delaying tactics from purchase ledger staff briefed to stall legitimate and due payments.

A positive step than any business can take - no matter what the size - is to implement Document Management Technology to deal with all aspects of Purchase Order and Invoice control.

Why? Simply because of the huge benefits in effective and efficient tracking of statements and PODs (proof of delivery) documentation.

Credit control departments which use manual processes are subject to regular problems with lost or misfiled documents, which make them vulnerable to delaying tactics. The costs - even in good times - have a negative effect on the bottom line. In the current climate, the effects of late payments can spell disaster if not kept under close control. This is where electronic document management comes to the rescue.

The frustration to cash flow is obvious, when it can take weeks for a Proof of Delivery document or an invoice to be discovered as missing, and needs to be raised again for sign off. How much simpler it is, to have a system whereby all accounts-related paperwork is scanned and delivered electronically to the customer. Not only is there then absolute proof of delivery, but there are no time delays associated with sending by mail via busy post-rooms. At a stroke, this prevents the age-old refrain that payments cannot be made because the invoice has not been received.

Document Management Software gives credit control staff instant desktop access to all documentation and tracking history - where customers original orders - previously scanned to the system, are linked to the sign-off documentation and the resulting invoice, along with proof of electronic receipt at the other end. Thus, with answers at their fingertips, credit control personnel are in the driving seat when it comes to any negative discussion about money owed.

There is no doubt that Document Management Software will reduce bad debts and improve payment collection - and also - and probably crucial for the overall health of any business - the morale of accounts staff who are always at the "sharp end" in any economic downturn.