Monday, July 7, 2014

Fourteen Tips On Improving Your Accounts Receivable Management

Your accounts receivable management is important, and that's why we've got fourteen reasons why your accounts receivable management may not be what it could be.  Here's a checklist of fourteen things you can do to improve your techniques and put more money in the bank.
  • Use valid sources when deciding who to extend credit to.
  • Communicate more often with your customers.
  • Verify invoice receipts.
  • Use standardized ways of collecting from customers.
  • Accept uncommon forms of payment.
  • Be on the lookout for customers that can't afford to pay or will be paying shortly.
  • Reduce your sales cycle time.
  • Monitor performance ratios to get a better idea of revenue.
  • Keep track of what is owed to you.
  • Know your customer's individual payment history.
  • Keep your collection policies updated and notify your customers of any changes.
  • Be lenient with customers that have extenuating circumstances.
  • Let people that pay on-time know that you're thankful for their prompt payment.
  • Offer incentives to customers with a good payment history.
If you follow these simple tips, you will increase the earning potential of your business.  Be sure not to waste too much of your time over-analyzing them, but use them as a guideline.  Also, be sure that you never make collection calls before an account is 60 days past due.  Not only will this most likely offend your customers, but it could also deter them from paying at all.  To talk more about this, or anything else, please contact us.  We look forward to hearing from you and helping you improve your accounts receivable management.

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