Tips & Tricks For Proper Streamlining Of Your Account Receivable
Account receivable gives you financial indication of your business. companies determine their policies either strict or lenient according to their account receivable time period. It plays a major role to those companies selling their services and god
Online, December 31, 2013 (Newswire.com) - Overview
As a business owner, whether you are a freelancer or a multi-employee company, it is equally important to keep track of your accounts receivables. A professionally managed accounts receivable system allows you to track and manage the current outstanding. It gives your business a professional image and ensures that your figures are in order during tax season. The more organized your billing system is, the more likely it is that your customers will pay up in a timely manner. Hence a proactive approach must be taken to ensure that the process of billing and collections operate smoothly. Understanding your customers well, and knowing what prompts their accounting and accountability can further help you implement other strategies in the future to get paid without being hostile.
Organize your Accounts Receivable
Accounts Receivable management is not as intricate as it seems. It is about being precise, unswerving and staying on top of those accounts. Your invoice should be a clear-open document that includes your company logo. If you have adopted any changes in the billing process that affects your customer's payment process, make sure that your customers are notified ahead of time. Being polite and requesting for payment within 15-20 days' time seems to get customers to pay faster than using terms such as "due on receipt" or "payment immediate". Hence think carefully about the actual wording on the terms and conditions on your invoices. The more methodical you make it for yourself, the simpler it will be. Also, while making collection calls follow the Fair Debt Collection Practices Act (FDCPA) and know the state laws. This is a law that dictates when to and when not to call a debtor.
Giving your clients a bit of flex room truly creates common goodwill and speed up payment.
Tricks & Tips to get you paid
Here are some simple tips for proper streamlining of your accounts receivable in order to get customers to pay on time.
Determine a time frame for payment that works for you and your clients.
Consistency is crucial in maintaining customers' respect and trust.
Establish a straightforward method to follow up on overdue invoices.
Streamline the process by automating the entire billing system.
A new client should be presented the terms of transactions of your company in writing.
Prepare your invoices like a pro. The goal is to give your customers enough information so that they approve and process the payment quickly.
Insuring your accounts receivable can be a smart way to protect your sales against non-payment risks. Certain policies also protect you from the commercial risks that causes uncontrolled non-payment like your customer changing his ownership, goes out of business or files bankruptcy. If collecting from tardy customers has been a painful experience, do not let it happen again. Change your payment modes so that you need not collect the payment after you have delivered your goods and get paid up front. Offer your customers with a wide range of payment options such as credit card, debit card, cash, cheque or electronic payment.