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.
AR management is an inevitable part of any business, but it is definitely not the easier part of running a business. As a result, offsite account receivable services are gaining immense popularity. Do you need offsite account receivable services? Let us find out.
- Do you find that you cannot pay sufficient attention to your business?
As the overdue payments pile, it is but understandable that your attention becomes increasingly focused on the payments. Unfortunately that never bodes well for your business and soon your business will suffer from lack of attention to core business areas. Handing over this task to the professionals will free you to spend time on your business.
- Are you spending a lot of time and energy on payment efforts?
Making repeated phone calls and sending out numerous emails is time and energy consuming and quite frustrating. Professional account receivable solutions companies, on the other hand, use innovative and efficient strategies that not only yield results but also take the burden off you.
- Are you spending a lot of money due to the overdue payments?
Overdue payments mean that you have to divert funds and often take loans. This is detrimental for business and never a good sign. In fact the longer the payments go unpaid, the lesser the chances that you will get them back. Account receivable solutions companies know their way around such issues and handling non- paying clients, which means they are more likely to produce results and get your money back.
Aside from being the professionals and knowing what to do, account receivable solutions agencies are licensed, bonded and bound by state and federal laws, so you have nothing to fear. You can also be assured of getting the best services and your money back as soon as possible. It also relieves you to focus on your business and grow it.
Invoice disputes are a major reason for delays in AR payments. While it may be difficult to eliminate invoice disputes altogether, you can try your best to prevent such disputes and in the event of their occurrence, handle it calmly and resolve the issue. Here are some precautions you can take to prevent and handle invoice disputes with clients.
- Generate Accurate Invoices– Missing and incorrect information on invoices is a major reason for invoice disputes and payment delays according to account receivable solutions companies. Generating accurate invoices with correct prices, items, units, billing name and address are of great importance to maintain good business relationships. Generating accurate invoices also helps build and maintain the reputation of your business.
- Backup Invoice Data– When a client raises an invoice dispute, it helps if precise data is presented to the client. Account receivable solutions businesses have found that clients are more likely to make the payment if you are able to provide accurate information that supports your invoice data. Always backup copies of quotes, contracts and all communication regarding products and services. Even if your client doesn’t agree to make the payment, these documents are needed to clear things in court.
- Clear Communication on Resolution– Account receivable solutions demand that you provide the client who raised the dispute with a plan for payment resolution. State professionally and clearly a plan for resolving the issue; this document will also serve as documentation in the event that the matter reaches court.
- Stay Calm– Every customer is important and should be treated with respect. Handle the irate customers with calm and listen to what they have to say, no matter how big or small the account they hold with your company. Doing so will not only help you to retain customers, it will also help to build your business’ reputation. Train your employees to handle situations calmly as well.
Invoice disputes are a part of doing business. There is no reason to take the matter personally and to erupt into negative interactions. Being prepared and keeping calm can go a long way to ensure you resolve invoice disputes.
Collecting payment from customers especially delinquent ones can be troublesome. You never know why your client isn’t making the payment, so it is in your best interests to not antagonise the client. All this is why account receivable solutions companies recommend handling payment collection with care. Here are some simple dos and don’ts of AR collection.
- Begin Collection Efforts As Soon As a Sale or Agreement is Made– Your customer owes you money as soon as you deliver the service or product, so collection attempts should begin at the earliest. However it would be wise to not bring up the topic of payment immediately, but rather get to it during a feedback call or courtesy call after delivery or completion of task.
- Document All Collection Communication– All account receivable solutions businesses unanimously agree on the fact that all collection communication should be documented. This serves as tangible proof of your collection efforts. It has also been proven that when you contact customers repeatedly concerning payment, the chances of you getting the payment is higher.
- Keep Your Calm– Payment collection is sensitive business. You, as a business owner, don’t like having to run behind money that you are owed, and your client can be pretty touchy about it as well, which is why emotions and tempers can rise in these exchanges. So, as the business owner, remember that account receivable solutions is best carried out when calm and focussed. Do not threaten or harass your customers; it will only serve to bring your business and you a bad name.
Account receivable solutions can be a daunting task. No one likes it but no business is without it. So the best you can do is find ways to make payment collection easier and do all you can to prevent late and delinquent payments from occurring. If all that doesn’t work or seems like too much, it might be a good idea to outsource to an account receivable solutions company.