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. To avoid these accounting problems, there are certain steps you can take, read more here to find out.
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. 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.
If you want to stay on top of your business money, you must maintain a healthy relationship with your clients as happy clients are more likely to pay the bills in their correct timescale. Late collection of will jeopardize your relationship with your clients, therefore hold up your end of the bargain and collect during the period for which you two agreed. 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!
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. 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. If you have clients who are overdue on payments, you should ban them from getting more credit services. Before you resort to collection on accounts receivable, try appealing to your client to avoid losing client and money. These are the ways to better manage your accounts receivable.
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