How to Better Manage 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. As a business owner, if you manage your cash flow properly it guarantees the existence of your business for a long time while a shortage of fund might be the result of poor management. Many businesses have a problem collecting payments from their clients and this usually leads them to delve into their savings to make ends meet. Here are ways to stay on top of your business money.
Emails are direct and instantly delivered and are a good means of sending bills to clients if you intend to speed up the invoicing process. Electronic mail is a good means of billing because it immediately reaches a customer in comparison to traditional mail that was usually prone to delays. Most companies usually ask for payment within the thirty days, however, with email and its speed of delivery, asking for payment from your clients on the receipt is a factor you should consider as this leads to a faster collection of funds.
Having a healthy relationship with your clients is of the utmost importance to the success of your business, as they are more likely to pay if they have a good relationship with your business. If you agree on a timescale with your clients, honor the agreement and avoid the late collection of funds. By offering your clients multiple payment methods, they will have no excuse when the time to collect the bills.
Every business has clients who always pay their bills on time, however, you can help them out by giving them a call post-invoice to ensure that received it and this helps you keep track of payments. 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. If managing your companies receivable accounts is a daunting task, hiring an account will free up some of your time which you can then invest in managing your business and you can click here to learn now!
Being too lenient on offering credits to your clients might affect your business negatively, so before you begin offering credits outline credit policies clearly. If you have clients who are overdue on payments, you should ban them from getting more credit services. By collecting on accounts receivable you will lose both your client and the costs that go along with doing so, try avoiding collection on accounts receivable. These are the ways to better manage your accounts receivable.
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