How Improving Accounts Receivable Management Makes Customers More Satisfied
There are three key ways in which improving accounts receivable management makes customers happier and more satisfied:
- Customers’ lives become easier with an automated system.
- Customers can be reminded of when their payments need to be sent in, elevating the stress from having to remember to submit a payment by the due date.
- Customers can enjoy an easier way of making payment by using their preferred payment type and channel.
Where to Begin with An Effective Accounts Receivable Management Strategy
The starting point when employing an accounts receivable management strategy that considers best practices is to make an effective plan. Only a fifth of all company credit departments have been shown to have developed a formal policy with goals that are well-defined, and this is one of the key reasons why so many companies struggle to receive payments in a timely manner.
By centralizing information and data, a more coherent approach to customer accounts can be taken, ensuring problems are spotted more rapidly, and outstanding amounts can be tackled at an earlier date for faster payments. A centralized system also ensures agents are provided with accurate and timely information, which will prevent misunderstandings and eliminate the possibility of human errors.
Taking a proactive approach is very important when it comes to accounts receivable management best practices. Invoicing parties at an earlier date, informing them of their upcoming payment date, and offering them the option to “set it and forget it” with recurring payment plans helps to increase not only on-time payments, but has also proven to create new and highly-profitable revenue streams from new payment channels. By including payment terms that are outlined clearly on the invoice, customers will be able to see at a glance all the key information they need when making one-time and recurring payments.
All businesses have issues with their accounts receivables occasionally, regardless of whether they're a large organization or a small family business. However, no matter the company’s size, the concern they could negatively affect their relationship with their customers if they demand payment when an account is outstanding remains the same. Yet, this approach just leads to ongoing problems and, especially, in the case of smaller businesses, could result in such a limited cash flow that the company goes under. By employing account receivables collection best practices, businesses can actually improve customer satisfaction and increase their revenue at the same time – a win-win situation for all parties involved.
Implementing A Convenient System
While considering the implementation of an effective accounts receivable management system, offering customers several convenient ways to pay is one of the best options to help facilitate timely payments. By giving consumers the chance to pay using credit or debit cards, or via ACH payments rather than relying solely on cash or check payments, companies can increase their chances of receiving outstanding sums on time and in full. An online payment portal also facilitates customers' ability to pay their accounts easily through a customized website, using a mobile device, or even by using the IVR system 24 hours a day so that your business can begin producing revenue after-hours..
BillingTree's online payment portals are one of the most innovative, user-friendly, and simple ways to improve any company's chances of clearing outstanding debts and improving customer relations. By giving customers the convenience they yearn for, both consumers and business owners can profit from the implementation of account receivables collection best practices.