Tips for Better Managing your Accounts Receivable
Keeping cash flow in order is not as easy as it sounds and it is one thing that a large percentage of business owners are struggling with. Correct cash flow will ensure your company’s survival for a long time while accounts receivable managed incorrectly can lead to a shortage of funds for your business. Running a business on very minimal income is a big challenge considering the expenses involved like paying employees and this becomes even more difficult if you have to do it from the savings. In this article you will read more on how to stay on top of your business money.
If you want the bills to reach your clients faster without any delay, try sending them via the email as this will speed up your invoicing. Traditional mail is good but it is prone to delay which is an advantage that email has because the mail is instantly delivered to a client once sent. Because of the speed of electronic email, it is not unfair for companies to ask for payment on receipt as this method leads to more collection of the fund.
A business with healthy relationship with its clients is more likely to prosper because the clients are more likely to pay the funds it needs to survive. Clients are more likely to pay if they feel they have a good relationship with you while you also need to hold up your end of the bargain and avoid late collection of funds. Whether it is PayPal or credit card you can ensure your clients have no excuse when it comes to the collection of bills and you can discover more here!
If you have clients who are eager to pay their bills on time you can keep track of the payments by calling after sending the invoice to ensure they received it. Forgetting of the due date of an invoice is a common occurrence, however, by calling post invoicing you can ensure your client does not forget the due date by asking when he or she will pay. To focus on managing your business, you should consider hiring an accountant to take care of your business finances.
After working with your clients for a long time offering credit on your products may be something you are considering, however, before you begin you need to clearly outline credit policies. Do not extend credit services to a client already in debt as this only works to enable their behavior. If you have been waiting a long time for a client to pay, avoid collection on accounts receivable as this will lead to losing a client. These are the ways to better manage your accounts receivable.