Customer service is an important aspect of any business. Your customer service team is the face of your business and how they interact and present themselves goes a long way towards creating the image of your business. This is also true when it comes to AR management, even if you outsource receivables management. If you have a decently sized business, chances are that all the calls to your clients for payments go through your customer service team or at least one person who fulfils that role. Though there may be no visual cues involved, a lot of signals are being sent out to the listener. A listener knows within seconds of talking to you how the caller’s day is going and how to push his buttons and this can be detrimental to your AR collection efforts. This is why outsource receivables management services say it is important that you and your people learn good telephone conversation skills.
- Develop the Right Tone– The tone of your voice makes all the difference- you should always sound friendly, calm, confident, trustworthy. It is based on this that the listener decides how the call should proceed. In receivables management, it helps if your client feels your confidence and calm when approaching them about payment.
- Avoid a Monotone Voice– Voice modulation delivers the importance of the matter being discussed effectively. If you are able to stress where needed, put feeling into your words and lower and raise your voice as needed, you will be able to communicate a lot more than you could ever say.
- Use a Strong Voice– A strong voice, not a loud one, suggests confidence and discourages any argument from your client. Loud voices, on the other hand, come across as rude and will rub your client the wrong way (you don’t need an outsource receivables management company to tell you that.
- Pause in the Right Places– If you speak continually or break off unnecessarily, you come across as impatient and uncomfortable. Deliver your message calmly and clearly with adequate pauses.
- Use Courteous, Polite Language– Polite language indicates respect and helps get across your message clearly. Do not antagonise your client.
If you do not have the time or resources to manage your AR, it might be prudent to invest in outsource receivables management services. They are professionals and know how to approach clients for overdue payments.
Receivable management is easily one of the toughest and most annoying areas of business management. Honestly, who likes running after clients to collect money even if it is what they owe you? However as much as you would like to keep away from such clients, you cannot afford to; the fact is you need the money they owe and technically, it belongs to you after all. So here is how you can prepare yourself for this task if you don’t outsource receivables management.
- Remember You Are Dealing With People– No matter how bad things look, it helps to remember that you are dealing a person or a group of people. You can work them so that you get your money. It helps to remember that harsh words and threats may not help your cause; you have to appeal to their humanity, provide proof and if all fails, proceed through legal means.
- Eyes on the Goal– The goal in this case is, of course, the money that is owed to you in your bank account. Do not think about the number of times you have had to call the client or how many false promises he made; your focus should be on getting the money, so ready yourself for ample resistance and work steadily towards your goal.
- Make That Uncomfortable Call– Be prepared to make that uncomfortable call that you just dread. Contact your client till you get a response. Every month, go over the list of overdue payments and decide how you will approach them.
- Get into the Mind of Your Client– The most effective way to get your clients to pay is to touch their emotions; they are after all only human. Involve them emotionally so that they feel compelled to make the payment.
Receivable management is not easy; it is time consuming, annoying and sometimes fruitless. If it seems like too much work, you can always outsource receivables management. Outsource receivables management firms are good at what they do and know how to figure out what makes your non- paying clients tick. By involving such organisations, not only do you get your money back, you are also free to focus on your business and attend to core business tasks.
Every business owner knows that bookkeeping, accounting and financial reporting is important. Despite this knowledge, many small and mid- size businesses don’t pay sufficient attention to their financial reports even when they outsource receivables management, bookkeeping and accounting. Failing to generate regular reports and periodically reviewing them can be detrimental to the health of your business; here is how.
- IRS Audits and Penalties– Your financial reports are a direct reflection of your books and bookkeeping. If your books and reports are incorrect, you will end up filing inaccurate tax returns. This can result in your company being audited by the Internal Revenue Service and state or local tax bodies. You don’t need that headache do you?
- Ineffective Business Strategies– Finance reports help business owners make informed business decisions and develop effective strategies. So what happens if you don’t have up-to-date or accurate reports? You don’t know where your business stands and you end up making ineffective decisions and strategies which are sure to steer your business in the wrong direction.
- Lose Support of Banks and Private Investors– Most businesses depend on banks, private investors and the like for loans and financial support. These institutions in return require timely and accurate financial reports to gauge the performance of the business they are investing in. Not providing regular reports is a sure shot way to lose their support.
Bookkeeping and accounting, though not core business functions, are vital to maintain a thriving business practice. If you do not have the time or knowledge to handle your business’s finances, you could consider outsourcing your bookkeeping and accounting. Numerous businesses today outsource receivables management, payroll processing, accounting and more to ensure that their business doesn’t suffer in any manner. It also allows you to focus on core business functions and other areas that you are good at, so that you can work towards growing your business. No matter what you do, do not make the mistake of ignoring your finance reports. So take the step towards ensuring a secure future for your business.
It is common for business owners to lag behind on their bookkeeping and accounting; some even blatantly ignore it. It is not that they don’t know how important the function is to their business, no,no; they are very much aware of it, however despite all the knowledge it just happens. Unfortunately, whether you like it or not, ignoring this business function can be detrimental to your business’ health. Here are some common deceivingly simple mistakes than business owners make that can put the business at risk.
- Not Seeking Help– Knowing when to ask for help is valuable in real life as well. No one can do everything on their own; at some point you are going to have to trust someone. The more growth your business sees, the more things will get out of hand because you will not be able to spend the amount of time and attention you used to earlier. So you have to identify someone reliable and enrol their help.
- Ignoring Receivables– This is a huge mistake; your receivables are what keeps your business going, so you have to always be on top of it. Agreed that some clients are difficult to get hold off, but putting things off will only cause you more problems. It is a good idea to outsource receivables management so that you need not worry about this aspect and can leave it to the professionals.
- Not Hiring in Good Bookkeeping Services– Unfortunately for something that focuses on saving businesses money, bookkeeping requires a lot of money just to be set up, and that is why numerous business owners try to cut corners by hiring cheaper bookkeeping companies or outsource receivables management to more affordable options. The thing is there is no guarantee that your bookkeepers are good and you will end up losing much more than you saved. So, do the wise thing- find a quality bookkeeper to do your bookkeeping.
- Sticking to Old School Practices– You have to admit it, science and technology have made our lives infinitely easier; everything is quicker and more efficient. So not utilizing the latest tools and software like accounting software, customer relationship management tools and inventory management tools can reduce your productivity and profits and leave you in the dust in the business race.