Management of cash flow is key to a successful business, and mastering this skill will help to protect you from the stress of unpaid bills and ensure you receive payment for your services or products. Keeping your business running requires sufficient liquid assets to pay your workers and suppliers. Therefore, maintaining that cash flow by guaranteeing all accounts receivable are promptly paid is essential. However, one problem that most businesses face from time to time is making sure customers pay bills in a timely manner. In this guide to effective accounts receivable management techniques, you will find some tips and tricks to speed up your payments and eliminate the problem of unpaid accounts.
Keep Detailed Notes
By keeping close records of all e-mails, conversations, and telephone calls made between your company and the customer, you will be able to easily determine the correct time to invoice the client, as well as the time frame within which you should have received your payment. By having this information close at hand, you will be able to refer it easily and quickly should the customer dispute any charges, or to a debt collection service should a third party be required to collect on your behalf.
Invoicing clients or customers for the correct amount and in a timely manner is essential to receiving quick payments. The longer the time that elapses between the goods or services being rendered and the invoice being received, the longer time they’ll have to make the payment and the greater number of excuses the customer may find for a late payment.
Remove Payment Barriers
Giving your customers a good range of payment methods from which to choose will make the chances of receiving your money on time much greater. An online payment portal, such as that offered by BillingTree, will enable your customers to choose from a broad spectrum of payment options, such as credit cards, debit cards, bank transfers, and e-checks, for extra convenience, effectively removing any barriers to payment. Also, as online payment portals are open 24/7, your customers can make their payments at any time and from any type of Internet-enabled device.
Establishing a Collection Schedule
With an online payment portal, it is possible to establish a collection schedule for your customers, while also being able to see which accounts remain unpaid. Automated reminders can be set up and sent out for upcoming payments, and customers can even establish their own payment plan or set up a recurring payment over the Internet so your cash flow can remain continuous.
When you choose a reliable and reputable online payment portal, such as BillingTree, to facilitate your customers’ payments, you’ll find you can reap the benefits of faster payments, better customer relations, and continuous cash flow. You will no longer have to manually deal with handling payments and by harnessing these effective accounts receivable management techniques, you will be able to give your company the best possible chance of success.