Why should you consider automating your accounts receivables, especially when you think you are doing fine? Well, the truth is no matter how much you believe you have your AR management under control, as your business grows, it will become increasingly difficult to keep track of your account receivables. Besides, automation can make your life easier with numerous benefits and requires very little work on your part. So let us take a look at how automated accounts receivable solutions can help your business.
- Go Paperless– With AR automation your business will be paperless in less than a week. Accounts receivable solutions software can be integrated easily with your invoicing application and other bookkeeping and accounting software, making managing everything easy and efficient. Once you get a hang of the software, you will be ready to go 100% paperless.
- No More Physical Storage Space– It is astounding how much documents and files you can accumulate when have been doing business for just a few days. Imagine how much you will accumulate in months and years and you have to keep them safely as well because you never know when you will need them. With automation, you get to store your documents electronically. Managing your documents will be easier, less time consuming and more efficient, plus they are safer and less space consuming.
- Customers Won’t Know A Thing– One of the problems of changing systems, especially accounts receivable solutions, is how much it can affect customers and customer service. No business owner wants to hear customer complaints, so this is a bonus.
Every field including accounts receivable solutions have been touched by automation and if you want your business to thrive in today’s highly competitive business world, you have to utilize all the resources and latest technological developments available to you. Give your business the edge with automated accounts receivable solutions.
Accounts Receivable management is probably one of the toughest parts of running a business. Collecting overdue payments is not easy because there can be numerous reasons for why a client may not have made the payment, which is why you need to handle the situation with the utmost care. Here are some accounts receivable solutions to help you deal with your overdue payments.
- Don’t Procrastinate– Some business owners aren’t sure about when they should start the collection efforts. Collection efforts can begin as soon as your product has been delivered, service has been provided or project has been completed. This will not only improve your cash flow, it will also help you build a better relationship with your client.
- Record Details of Collection Efforts– In accounts receivable solutions, it is important that you document all collection communication. This will not only serve as proof of your attempts to contact the client, but will also provide you with a clear picture of how things are and information to develop a collection strategy. Always remember that persistence is key- the more persistent you are, the more chances there are of you getting paid.
- Offer Alternative Payment Options– It always helps to have multiple modes of payment. This will make it easier for clients to pay you and clear dues.
- Never Harass or Threaten– It is easy to lose your cool when all your attempts at collecting overdue payments have yielded no results. You will be tempted to threaten your client or use inappropriate language at this point, but you should keep your cool at all times. To behave otherwise would be unprofessional and can damage your reputation.
Accounts Receivable management can be very difficult on business owners. If you find that it is taking a toll on you and your business is suffering, you could consider hiring an accounts receivable solutions firm.
It feels great to own and run your own business- the rush when you see your sales numbers increasing, the thrill when you hear people talking about your business; oh yes, it is just amazing. Sadly running a business has its downs as well; one thing that all small business owners hope they don’t see is overdue invoices. Waiting for payments to come in when you are a small business owner or an entrepreneur is tough, especially since you depend on the payments to take you through the month.
All business owners are looking for accounts receivable solutions, because their business depends on it. So what can you do to improve your situation? What if you were to collect payments upfront? What if you were to tell your client that you will start work only when you receive payment? Think about it- no more waiting for clients to pay up.
If you would like to try this, the first thing you need to do when meeting with a client is declare expectations before you start work. Lay the ground work, sell your business or your services and then state your payment terms. Of course, the client will have a number of reasons for why they can’t make an upfront payment-maybe they are worried you won’t fulfil your end of the bargain, maybe they can only pay by check, maybe they need approvals before agreeing. Hear them out, brainstorm and together come up with a payment option that can work for both of you.
It also helps if you quote fixed rates and skip the hourly rates. This provides clients with clarity and they know what they are getting into. You can also suggest discounts (who doesn’t like discounts!) for upfront payments as accounts receivable solutions.
Of course, there are downsides to this option; not every business likes the idea of upfront payments. If you are just starting out and building your reputation, losing a client over this can be bad for business. However if you have a good standing in your field with a loyal client base, you can try this from your next customer. This option for accounts receivable solutions can also help you understand the client based on how he reacts to your condition and even filter out clients you don’t want to work with before entering into a contract with them.
While the accounts receivable solutions of asking for payments upfront may not work for everyone, it could work for you; think about it.
Every business owner knows how important it is to keep business records safe. All documents related to business activities have to be kept to avoid litigation and tax problems in future. However keeping these records is not an easy task and can be tiresome to keep track of, which is why all business owners can’t wait to get rid of their records. The problem however is that they don’t know how long they are required to keep these records.
The IRS has a set of records keeping rules for tax documents, there is however very little guidance on other business documents. Bookkeepers, accountants, accounts receivable solutions providers, payroll processing companies and the rest however recommend that you keep your records for at least 7 years to be safe. You never know when and why you will need the documents. Let us look at some specific documents and how long you will be required to keep them.
Business and Payroll Tax Returns– All your business tax returns related documents need to be maintained for at least 3 years, i.e. until the Internal Revenue Service can no longer audit your return. All your payroll tax related documents have to be retained for up to 4 years from the date you paid them.
Bookkeeping and Accounting Records– All accounts receivable solutions providers, bookkeepers and accountants feel that it is wise to keep your accounts and books safe for as long as possible, the minimum period being 7 years. This includes your profit and loss reports, budgets, receipts, reconciliation statements, bank account and credit card statements.
Employee Records– 7 years from the data of termination or resignation is the minimum period to keep employee records. This can go up to 10 years in the event of a work related accident or claim against the company.
Be wise and choose well. If you have even the slightest hesitation, don’t do it, because once gone, you won’t get the records back. Business records have to be handled with the utmost care.