How Rentsync Slashed Bad Debt by 50% With Kolleno

When you are busy revolutionizing an industry, the last thing you want is to be held back by financial bottlenecks. For Rentsync, the Toronto-based leader in rental marketing technology, this was precisely the challenge they faced. 

Their platform had become indispensable to property managers across North America, powering everything from marketing automation to resident management for over 1,700,000 units. 

Yet behind the scenes, their accounts receivable process was creating cash flow constraints that threatened to slow their ambitious growth trajectory. With decentralized communications and escalating DSO, Rentsync needed a financial management solution as innovative as their own technology. 

Kolleno’s accounts receivable platform offered exactly that.

The Challenge

As Rentsync scaled its rental marketing platform across North America, the company encountered a few challenges in their AR processes. What began as manageable accounting processes quickly became overwhelming as their client base tripled over just three years.

1. Escalating Days Sales Outstanding

Perhaps the most pressing issue was the alarming increase in Rentsync’s Days Sales Outstanding (DSO). What had once been a reasonable payment timeline had stretched to over 70 days. This created substantial cash flow constraints for the rapidly expanding business.

“Our DSO had grown to more than 70 days, which was creating real pressure on our working capital,” explains Leena Lukka, CFO at Rentsync. “As an innovative technology company, we needed that capital to invest in product development and growth initiatives, but it was increasingly tied up in unpaid invoices.”

This extended payment cycle forced the company to allocate more resources to working capital management rather than focusing on their core innovation and expansion strategies.

2. Mounting Bad Debt Allowances

The extended payment timelines led to another concerning trend: growing bad debt allowances. As more invoices aged beyond 90 days, the finance team had to increase provisions for potential non-payment, directly impacting profitability and financial forecasting accuracy.

The uncertainty around collections made financial planning increasingly difficult, affecting everything from hiring decisions to technology investments. Without reliable projections of incoming cash flow, Rentsync’s leadership team struggled to make confident decisions about the company’s future direction.

3. Decentralized Client Communications

Compounding these financial challenges was a fragmented approach to client communications. With the rapid expansion of their client base, Rentsync’s team was managing payment follow-ups through scattered email threads and inconsistent tracking methods.

“We had no centralized system for tracking client interactions,” notes Lukka. “If a team member who had been handling collections for a particular account left the company, we often lost the thread of those communications. It was nearly impossible to maintain consistent follow-up.”

This decentralized approach led to inconsistent messaging and missed follow-ups. Occasionally, it even led to awkward situations where multiple team members would contact the same client about the same outstanding payment.

4. Manual Processes Straining Resources

The finance team was spending an increasing amount of time on manual tasks—sending individual reminder emails, updating spreadsheets, and cross-referencing payment information in multiple systems. These labor-intensive processes diverted valuable resources away from strategic financial planning and analysis.

“Our finance team was spending hours each week just trying to keep up with payment tracking and reminders,” says Lukka. “It wasn’t sustainable, and it certainly wasn’t the best use of their expertise.”

As a technology company dedicated to streamlining processes for their own clients, Rentsync recognized the irony in their own inefficient financial operations. They needed a solution that could bring the same level of automation and efficiency to their accounts receivable that their platform brought to rental marketing.

The Solution

Why Kolleno Accounts Receivable Management?

Rentsync needed a comprehensive solution that would integrate seamlessly with their existing systems while providing the automation and visibility required to transform their collections process.

Put simply, Rentsync needed to:

• Centralize all customer communications to boost visibility and reduce manual workload.
• Streamline payment tracking and reconciliation with their Xero accounting platform.
• Create automated communication workflows to ensure consistent client outreach. 
• Generate a more efficient approach to task management, boosting the team’s productivity.

After thorough evaluation, Rentsync decided to implement Kolleno’s accounts receivable management solution. The platform’s powerful automation capabilities, robust Xero integration, and intuitive interface aligned perfectly with their requirements.

“The Kolleno team was impressive and responsive, while the platform spoke for itself” explains Leena Lukka, CFO at Rentsync. “We felt like we were not only gaining a powerful tool, but also genuine partners who would help our business grow.”

Kolleno’s accounts receivable platform delivered immediate and significant improvements across Rentsync’s financial operations. By automating routine tasks, providing comprehensive visibility, and streamlining client communications, the platform transformed how the rental marketing leader managed collections.

Seamless Xero Integration

Prior to implementing Kolleno, Rentsync’s finance team struggled with limited visibility between their accounting system and their collections process. Manual reconciliation was time-consuming and prone to errors, leading to discrepancies and inefficiencies.

Kolleno’s integration with Xero eliminated these challenges by creating a seamless, two-way flow of information. Invoices, payments, and client data automatically synchronize between the systems, ensuring everyone works with accurate, up-to-date information at all times.

“The Xero integration has been a game-changer for us,” says Leena Lukka. “We no longer need to manually update records or cross-reference information between systems. Everything syncs automatically, giving us complete confidence in our financial data.”

This integration has also streamlined the reconciliation process. When a payment is received, it’s automatically matched to the corresponding invoice in both systems. This not only eliminates the need for manual verification but has also drastically reduced the risk of errors.

Automated Workflows

One of the most significant improvements has been the automation of Rentsync’s collections process through Kolleno’s intelligent workflows. The platform now automatically sends payment reminders, follow-ups, and thank-you messages based on predefined triggers and timelines.

These automated workflows ensure consistent, timely communication with clients about outstanding payments without requiring manual intervention from the finance team. The system intelligently escalates communications based on payment status. The result? Overdue accounts receive appropriate attention without overwhelming clients with unnecessary reminders.

“Before Kolleno, our follow-up process was entirely manual and often inconsistent,” explains Leena Lukka. “Now, every client receives appropriate reminders at the right time, without our team having to remember to send them. The automation has not only saved us time but has also improved our collections rate dramatically.”

The workflow engine also adapts based on client behavior, adjusting communication frequency and channels based on past interactions. This intelligent approach ensures that collections efforts are optimized for each specific client, improving effectiveness without damaging relationships.

Centralized Communications Hub

Kolleno has eliminated Rentsync’s previously fragmented approach to client communications by providing a centralized customer timeline that displays payment-related interactions. All emails, notes, payment promises, and dispute records are stored in a single system, which is accessible to the entire finance team.

This centralization ensures continuity of client relationships, even when team members change. New team members can quickly get up to speed on the history of client interactions, maintaining consistent communication and avoiding awkward situations where clients receive duplicate or contradictory messages.

“Having all our client payment communications in one place has been invaluable,” says Lukka. “It ensures that anyone on our team can pick up a client relationship seamlessly, with full context of previous interactions. This has significantly improved both our internal efficiency and our client experience.”

Task Management System

Kolleno’s task management system has brought structure and organization to Rentsync’s collections process. The platform automatically prioritizes accounts based on value, age, and risk factors, ensuring the finance team focuses their attention where it’s most needed.

This structured approach has eliminated the chaos of the previous manual process. No longer do team members have to rely on personal reminders and spreadsheet tracking. Now, everything is organized in one place, with clear ownership and deadlines for each task.

“Kolleno has put organization back into our AR processes,” explains Leena Lukka. “The task management system ensures nothing falls through the cracks. Our team knows exactly what needs to be done each day, which has dramatically improved our productivity and effectiveness.”

The Onboarding Experience

Implementing a new financial system can often be disruptive. However, Rentsync found Kolleno’s onboarding process remarkably straightforward and efficient. Kolleno’s team worked closely with Rentsync to ensure a smooth transition that minimized disruption to their ongoing operations.

The implementation began with connecting Kolleno to Rentsync’s Xero account, automatically importing all existing invoices, client information, and payment histories. Custom fields and workflows were set up to match Rentsync’s specific business requirements, ensuring the platform was tailored to their needs from day one.

Kolleno provided hands-on guidance to ensure Rentsync’s finance team could quickly become proficient with the system, and they were always available if the team had any questions.

“The onboarding process was surprisingly painless,” notes Leena. “The Kolleno team guided us through each step, ensuring our data was correctly migrated and our team was comfortable with the new system. We were up and running much faster than we had anticipated.”

The Impact

Kolleno’s accounts receivable platform has delivered transformative results for Rentsync. Within a relatively short time frame, the company has seen substantial improvements across a range of key financial metrics.

• 50% reduction in bad debt allowance
• 29% reduction in Days Sales Outstanding (DSO)
• 1.6x increase in collections within 30 days of being overdue

That being said, these impressive statistics tell only part of the story. The real transformation lies in how Kolleno has radically reimagined Rentsync’s daily operations.

Before implementing Kolleno, Rentsync’s finance team spent hours each week manually tracking invoices, crafting individual follow-up emails, and updating payment records across multiple systems. This administrative burden pulled valuable resources away from strategic activities, limiting the team’s ability to focus on business growth initiatives.

Today, with Kolleno’s automated workflows handling routine communications and its Xero integration eliminating manual data entry, the finance team has reclaimed significant time for higher-value activities. The seamless synchronization between systems ensures data accuracy without requiring constant reconciliation. Meanwhile, the intelligent workflows deliver timely, consistent payment reminders without manual intervention.

“Kolleno hasn’t just improved our collections—it’s fundamentally changed how we operate as a business. The combination of time savings, improved cash flow, and enhanced financial visibility has delivered value far beyond what we initially expected.”

– Leena Lukka, CFO, Rentsync

Ready to Transform Your Accounts Receivables Management?

Book a demo today to see how Kolleno can revolutionize your collections and help you achieve the same impressive results as Rentsync.

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