Share:

In order to be successful, a business must be able to generate sufficient cash flow to cover everyday expenses. This can be a challenge for many small businesses, especially if they’re having difficulty enforcing proper accounts receivable management practices. To ensure your company has the funds it needs to be profitable and continue to grow, consider the following tactics.

Top Tips for Successful Accounts Receivable Management

1. Make Your Conditions Clear

One of the best ways to ensure on-time payment from clients is to make your conditions crystal-clear from the start. This means laying out your payment requirements as soon as you take on a client and reminding them of your policies the moment an invoice is past due.

It’s also important to ensure your invoices are easy to pay by making sure they contain all relevant info, such as contact details, due dates, and payment terms.

2. Provide Preemptive Follow-Ups

Another best practice for proper accounts receivable management is to follow up with clients a few days before an invoice is due. In addition to reminding your client that they have an upcoming payment, this also makes it clear that your accounting department is on top of past-due bills and diligent about collections.

3. Act Fast When Accounts Are Past Due

Accounts Receivable ManagementAs most accounts receivable management professionals will tell you, the longer you let a bill go unpaid, the less likely you’ll ever be able to collect on it. Notify your client immediately when their invoice is past due, and restate your terms with every reminder—including the penalties they’ll face if they continue to neglect payment.

4. Consider Offering Payment Plans

If you remind a client about a past-due payment and they let you know they’re having cash flow problems, consider giving them an extension and offering a payment plan. The fact that they were upfront about their lateness typically means they’re serious about doing business with you, and providing an extension can go a long way toward establishing long-term customer loyalty. 

 

If you need help with your company’s bill collection services, contact Joseph, Mann and Creed in Twinsburg, OH. Since 2001, this full-service accounts receivable management company has been helping businesses streamline their collection strategies and collect unpaid debts both locally and internationally. Visit their website to learn more about their services and call (216) 831-5626 to speak with a helpful representative today. Check out their Linkedin page to get to know the company.

tracking