Tag Archives: Accounts Payable Management

Client Refusing to Pay?

What do you do when your client just refuses to pay? Maybe you have already been there, maybe you haven’t, but if your business depends heavily on customers being satisfied and payments being made on time (sounds like most businesses to me- accounts payable outsourcing, HR firms, retail), you are bound to face this at some point. So now, what do you do when that happens? Deal with it politely and respectfully; here’s how accounts payable outsourcing firms recommend you proceed.

  • Send Friendly Reminders– Monthly bills and phone calls politely reminding of overdue payments are fine and needed even. However you should take a look at your state’s collection laws to ensure you do not get into trouble with the law for harassment.

Accounts Payable Outsourcing

  • Understand Things from the Client’s Point of View– Most often, clients don’t pay because they aren’t happy with the services provided. Place yourself in their shoes, understand where they come from and acknowledge their point of view. If needed, offer discounts on future services. Understand that it is easier to maintain relationships than build new ones; if there is a way to retain the client, do it. But if you find that things don’t work out in spite of your best efforts, it may be best to end the relationship.

Accounts Payable Outsourcing

  • Get Legal Help– If your client still refuses to pay up and is giving you trouble, it might be time for you to approach the small claims court or civil court. Do thorough research and consider your options before doing this. Sometimes clients will agree to pay when things reach the court to avoid legal proceedings. Make sure your client is aware of your intentions beforehand. Do not let your legal proceedings take them by surprise.

Collecting payments from a client who just refuses to pay is not pleasant, which is why it makes sense to prevent it already together. Unfortunately such things need not always be in your hands. If you find that accounts payable management is becoming too much for you and your business, it might be a good idea to invest in an accounts payable outsourcing firm.

Building an Efficient Accounts Payable Management System

Accounts Payable is important for the functioning of any organisation. Unfortunately, it often takes the backseat when other priorities have to be attended to, however it is never wise to ignore AP. Here are some practices from accounts payable outsourcing experts to make accounts payable management more effective.

  • Introduce a Centralised Accounts Payable Management System– If you have a business that has multiple branches, having each one handle its own payments can result in confusion and double payments. A centralised system will ensure that all payments are made correctly and on time. This is also proven to increase efficiency and productivity. Plus all AP data will be only a click away.

Accounts Payable Outsourcing

  • Paperless Processing– Implementing a paperless payment processing system, as we all know, can be quite expensive, but it is definitely a lot more efficient. If you find yourself immersed in the confusion that accompanies paper invoices like missing invoices, receipts, forgetting payments etc you should consider implementing a paperless AP management system.
  • Management Workflows– The efficiency of any financial process can be improved by developing a management workflow. This can help identify bottlenecks in the system and process and address them quickly. Streamlining processes and improving efficiency are also advantages of implementing a management workflow.

Accounts Payable Management

  • Maintain Ledgers– A good businessman knows how important ledgers are in running a business. Ledgers recording inventory, payments and the rest are invaluable whether on paper or digital. Your ledger system must be simple, accurate, easy to use and understand.

Your business cannot grow without proper Accounts Payable Management. If you feel that it is a lot to take in and you don’t have the time to attend to AP, you can always try accounts payable outsourcing. Accounts payable outsourcing firms are efficient. You can let the professionals take care of your accounts payable while you focus on growing your business.