Every company would like to clear accounts receivables as fast as possible because these can hamper cash flow and business growth. This is true for all, regardless of the nature of the business or industry they are engaged in. This is also the reason why these companies are always stepping up their accounts collection departments. They know that sales not converted to cash are not yet useful to the company. That’s why they would always exhaust their efforts to make sure these conversions are made, especially small businesses which rely heavily on their cash flow in order to sustain the business.

 

Get automated

Be sure that whatever software you use to track and record A/R payments is integrated with the software that records deposits and reconciles your bank account. This will ensure that the A/R payments received agree with the checks deposited in the bank account. Choose an expert consultant to help you select a proper accounting software.

 

Establish credit and collection policies

You may or may not be interested in making credit available to some clients. If you do, set clear credit policies ahead of time to avoid extending too much credit to some clients and make it easy for anyone in your business to determine whether to extend credit when a client requests it.

Similarly, clear AR collection policies ensure you can take a proactive approach to addressing overdue accounts and streamline your process. Your collection policy should include periodic reviews of accounts receivable and steps to take to follow up with clients and collect overdue balances.

 

Your clients are busy people and sometimes they just forget they have an invoice waiting to be paid. Sending an automated follow-up is a gentle reminder they need to make a payment and a great tool for your accounts receivable collections.

Prepare an AR report to measure the liquidity of receivable  

Offer easy payment option

Customers typically pay twice as fast when they are offered convenient payment options. Providing mobile payment choices and accepting payment through methods such as electronic deposit, debit card and credit card means you will not have to wait for your customer to write a check or for the post office to deliver it.

 

If you would like assistance in improving your cash flow and strengthening your organization, please contact us at 064732221 or info@buskeep.com.