So we’ve talked about things you should do to help modernize your Accounts Receivable department, but did you know there’s also a lot of things you shouldn’t do? Here are our top four Accounts Receivable Don’ts!
Accounts Receivable: What you should NOT do
Number one, don’t blame your lack of electronic invoices on customers who haven’t seen the light. While it’s true many customers, most of them in the older generation, cannot stand the thought of giving up their scraps of dead trees to save the environment and cut your paper costs! However, it is your job to make them want to give up their carbon driven ways and switch to electronic invoicing options.
You can do all kinds of things to help them get started from incentive programs to environmental advertisement. Just because they haven’t come around yet doesn’t mean they won’t, keep trying out new ways to hook these customers on e-voices, eventually you’ll have them all converted or the world will run out of paper and we’ll all be without oxygen anyway, right?
Number two, you still haven’t switched to automated AR software leaving your staff to work with extra tedium to get the work done at double (or worse) the time and you are also out the cost of supplies like ink, stamps, and oh yeah paper. It simply doesn’t make sense in this culture of technological advancement to spend more money and more time on tasks that can be simply managed by software allowing your AR department to focus on quality and precision.
Number three, lack of visibility, and tracking of your invoices. This happens when, yep, you guessed it, this happens when you mail invoices instead of using an automated system that can tell you exactly when it was sent, where it is going, and how much an invoice is for.
Number four, your DSO or daily sales sales outstanding is extremely high which is most times because you haven’t upgraded to an automated system (You see where we’re going with this?). Mailing out invoices takes valuable time and resources compared to the instant click of a mouse. Mailed invoices can take 2 weeks or longer to reach their destinations!
And there you have it! Keep these Don’ts away from your Accounts Receivable Department and help your business flourish with automation software!
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