If you are struggling to keep cash flow in order, there is no need to worry because you are not the only one; this is a challenge that many business owners face. Lack or shortage of funds might lead to the collapse of your business and this usually begins with incorrect management of receivable accounts. Many businesses have a problem collecting payments from their clients and this usually leads them to delve into their savings to make ends meet. To avoid these accounting problems, there are certain steps you can take, read more here to find out.
Emails are direct and instantly delivered and are a good means of sending bills to clients if you intend to speed up the invoicing process. Traditional mail is good but it is prone to delay which is an advantage that email has because the mail is instantly delivered to a client once sent. 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.
If you want to stay on top of your business money, you must maintain a healthy relationship with your clients as happy clients are more likely to pay the bills in their correct timescale. If you agree on a timescale with your clients, honor the agreement and avoid the late collection of funds. By offering your clients multiple payment methods, they will have no excuse when the time to collect the bills.
Ensure your clients that are always known to pay their bills on time receive the correct invoice by calling after sending to ensure they have been received. Forgetting of the due date of an invoice is a common occurrence, however, by calling post invoicing you can ensure your client does not forget the due date by asking when he or she will pay. To focus on managing your business, you should consider hiring an accountant to take care of your business finances.
Being too lenient on offering credits to your clients might affect your business negatively, so before you begin offering credits outline credit policies clearly. this website can allow you to find info. on clients who are overdue in payment to ban them from accessing credit services because still giving them only enables their behavior. By collecting on accounts receivable you will lose both your client and the costs that go along with doing so, try avoiding collection on accounts receivable. These are the ways to better manage your accounts receivable.