To maintain the Accounts Receivable Services, it is mandatory to follow each customer on a daily basis. The person who handles this department has to call the customers and remind them about the invoices and the payment left by them. To do this kind of process you will get the payment early than expected and it may not harm the profit of the company. Therefore you have that much of cash on the hand when you will have to pay it to your vendors. So it has the Receivables Management Process of your business.
Here are some tips for better receivables management process for your business:
1.Prompt recording and invoicing:
Record sales as quickly as possible and ensure that the invoices are delivered to the client as soon as the product is sold or when the service is completed. This helps in faster conversation from cash after-sales transactions.
Customers should be made to adhere to the credit policies and should be followed up immediately after the invoices are sent.
3.Outsourcing of Receivables:
In case the present staff is not able to effectively manage your receivables it would be a good decision to outsource to Intelligent Receivables Management Can Improve Customer Relationships with third-party vendors. This would have a dual advantage of lower cost as well as an increasing inefficiency.
4.Follow-up of Receivables:
A timely follow-up of the receivables would help in faster collection and reduce the number of bad debts. You can hire an agency to have a timely follow up of receivables.
The business should do regular aging analysis and thereby getting an overview of where the receivables management stand.
The business should also analyze the present credit practices of competitors to know the recent trends in the collection.
Automation of business process can prove to be cost advantageous. We can provide Automation with Software’s like intuit Quickbooks freeing up your majority of the time. Quick Books can do automation for you.
8.Quality of Receivables:
The business should ensure that the receivables are of high quality and would not default. Various tools like bank guarantee, letter of credit, etc. can be used for reducing the default risk of receivables.
9.Mode of payments:
The business should accept payments in as many ways as possible which makes it easier for the business to pay on time.
We at RAYVAT ACCOUNTING would help you to manage your receivables effectively. You can drop a mail at [email protected] for a free analysis of your present process and how can we help you manage your receivables at competitive rates.