Tag Archives: AR management

Do You Have An AR Management Problem?

Do you have an Accounts Receivable management problem? If you are not sure of the answer, chances are that you are having one or will most likely have one soon. Better safe than sorry; so here are some questions to ask yourself to clear things up.

  1. How is your day sales outstanding faring?

If you have longstanding day sales outstanding, you are headed for trouble. Outstanding dues are never a good thing and the longer you go without collecting them, the greater the risk of losing the payment altogether. It also means you are never able to plan for your business’ future. Numerous businesses have had to shut down due to poor AR management, so be wise. Invest in good receivable management services and save your business.

Receivable Management Services

  1. Do you know who owes you how much?

If you don’t have records of payments due to you and don’t send out invoices on time, you are heading for trouble. Always stay on top of your Accounts Receivable. If you have customers who are habitual defaulters, you should take a call about them immediately; frequent payment defaulting does not signal a healthy business arrangement.

  1. Do you have proper records of contracts, agreements, invoices and other payment related documents?

When it comes to something as crucial as payments due, you cannot take any chances. Maintain all your records well because you never know when you are going to need it; this also includes the follow up emails you send your customers. Communication is key in business.

AR management

 

  1. Do you regularly use the services of a collection agency?

If you have to send invoices to collection agencies, well, you do seem to be having an AR problem. Receivable management services can make things easier for you, by helping you set up an efficient AR management system.

  1. Are all your invoices for payments over 90 days overdue?

The answer to this question speaks for itself; you definitely have an AR management problem.

AR management is a crucial part of any business; it can determine whether your business rises or falls. If you think your business is facing an AR crisis, you should turn things around immediately or else, you could invest in receivable management services. They will clean up your records and set up a reliable AR management system for you.

Managing Account Receivables Payments

The primary aim of all businesses is to generate income. As a business owner, one of the first things you should have in place is a system for AR management. Most business owners have a lot of trouble collecting payment, which is why it is vital that you understand this from the very start and ensure that you take steps to ensure effective AR management. Here are a few steps that you can take to curb the issue of late payments.

  1. Clearly State Terms of Payment– Believe it or not, most late payments result from miscommunication or misunderstandings about the terms of payment. So keep things simple, make sure your customers know and can easily remember your terms of payment and include them in every invoice.

Receivable management services

  1. Send Payment Due Reminders– Send out payment due reminders to customers when their payments are due. Receivable management services and AR management tools are a better means of managing this task as it will require just a few clicks on your part, and your customers will get reminder notices. Make sure you include the due date and the terms of payment in the email.
  1. If a Payment is Past Due– Send out late payment notices as soon as the due date is over. Do not wait to collect names of all defaulters. Send out notices as and when the due date is past for each company. While this may seem like a lot of work, this measure is sure to yield results as it signals to your customer that on time payments are important to you.

AR management

  1. If a Payment is More than 30 Days Overdue– If your customer hasn’t paid up after 30 days, you are dealing with a delinquent customer. Continue to send regular notices and get help to ensure you do not lose your payment. The more days pass, the less chance there is of you receiving your payment.

If delinquent payments are a regular affair for your business, you should consider receivable management services. They are better equipped to handle such scenarios and can relieve you of the stress of dealing with AR issues.