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.
- 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.
- 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.
- 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.
- 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.
- 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.