Accounts receivable is undeniably an important part of any business, but it is probably also one of the toughest as well. AR management would be a lot better if you tweak your collection efforts a little, here is how.

• Educate Different Teams– Your AR management is not the only team that deals with customers. Make sure that your sales team and customer executives are also aware about account receivable solutions. The more people are aware and take efforts to push collection, the more the chances of you getting paid. You should also make sure your client is aware of how important it is to clear dues on time. If you delay invoices, your client will also adopt a lax attitude. Have clear payment terms and dates.

• Prompt Invoices– This is pretty simple- prompt and accurate invoices with clear payment terms and detailed information is the first step to timely payments. It increases the likelihood of you being paid as well.

• Clear Communication– Lines of communication should always be open between you and the client. This speeds up payment and helps develop a relationship as well. Communicate your expectations clearly so that confusion can be avoided. Send out frequent reminders and document all collection efforts as part of account receivable solutions.

• Flexible Payment Options– Flexible payment options prompt faster payment. Offer alternate payment options, split payments, automated payments so that the client can choose what works for him and clear payments quickly.

• Escalate When Needed– Despite all your efforts, there will be clients who refuse to make payments. Know when to escalate the issue; contact collection specialists so that they can help you. Investing in account receivable solutions firms is also a good idea as it can relieve you of the pressure of collecting on overdue payments and focus on your business instead.

AR management is frustrating but essential for your business.