How to Better Manage your Accounts Receivable
Most business owners are struggling to keep the cash flow of their businesses in order, so if you are struggling with the same problem, you can take consolation in the fact that you are not alone. Lack or shortage of funds might lead to the collapse of your business and this usually begins with incorrect management of receivable accounts. Running a business on very minimal income is a big challenge considering the expenses involved like paying employees and this becomes even more difficult if you have to do it from the savings. In this article you will read more on how to stay on top of your business money.
To stay on top of your business money you can consider using the electronic payment to speed up the process of invoicing; this can be done by sending out bills by email or using email invoices. Before you sent the bills through email ensure you double-check the emails to be sure you have gotten the right client. Because of the speed of electronic email, it is not unfair for companies to ask for payment on receipt as this method leads to more collection of the fund.
A business with healthy relationship with its clients is more likely to prosper because the clients are more likely to pay the funds it needs to survive. Late collection of will jeopardize your relationship with your clients, therefore hold up your end of the bargain and collect during the period for which you two agreed. Whether it is PayPal or credit card you can ensure your clients have no excuse when it comes to the collection of bills and you can discover more here!
If you have clients who are eager to pay their bills on time you can keep track of the payments by calling after sending the invoice to ensure they received it. Do not just confirm if the invoice has been received but also enquire when they will be paid to prevent due dates from going awry. To focus on managing your business, you should consider hiring an accountant to take care of your business finances.
After working with your clients for a long time offering credit on your products may be something you are considering, however, before you begin you need to clearly outline credit policies. If you have clients who are overdue on payments, you should ban them from getting more credit services. Before you resort to collection on accounts receivable, try appealing to your client to avoid losing client and money. Money is imperative to any business and by managing your account receivable using these factors you ensure it is always in-flow.