3 Accounts Receivable Management Mistakes to Avoid
When you start a small business, there are many learning curves you’ll have to handle. One of the most important involves your accounts receivable management. Learning how to deal with clients and bills can be tricky, but there are a few tips you can utilize to avoid unnecessary missteps. The following guide outlines important examples of what to avoid so you can ensure seamless transactions.
3 Common Mistakes in Accounts Receivable Management
1. Not Staying Up to Date With Contact Information
If you send invoices to your clients for them to review and pay, it’s crucial to have the most accurate information at all times. Factors like job turnover, email server migration, and even something as simple as someone getting married can impact the accuracy of your contacts and lead to past-due debts. To avoid this issue, give each client a contact sheet to fill out once a quarter.
2. Assuming Clients Will Remember to Pay Their Bills
Just like you, your customers have businesses to run, and it may be difficult for them to keep track of their due dates. Failing to send out reminders will often lead to late payments, so opt to send out two notifications: one when their bill is ready for review and one 10 days before it’s due.
3. Not Having a Plan in Place for Escalation Cases
Confronting a customer about unpaid bills can be intimidating, but it’s a responsibility you can’t shy away from. Outline the steps employees should take when this problem occurs in a written document and give it to each account manager during their onboarding training. This is the key to avoiding in-house mistakes and maintaining positive client relationships.
If you need help with accounts receivable management, talk to the team at Joseph, Mann & Creed in Twinsburg, OH. As a full-service collection and management agency with almost 20 years of experience, they have the resources, knowledge, and expertise needed to ensure seamless operations for your business. Visit their website to learn more about their practice and call (216) 831-5626 to schedule an appointment today.
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