Accounts Receivable Management Tactics and Tips (to make sure you get paid)
Accounts Receivable Management may just be one of the most important areas of your business. After all, their main focus is acquiring revenue, so that you get paid! The process though seemingly straight forward isn’t as easy as it may seem. There are many obstacles to maneuver and skills to acquire to manage your accounts receivable department. Here are a few tactics and tips to make sure you get paid!
Accounts Receivable Management Tips:
The first thing you want to do with your AR department is to get organized and become as informed about your customers as possible. Set-up a through credit application that will allow you to vet each client with the information you obtain about them. This will help you decide who to extend credit to and how much.
Next, is to set a credit limit. Limiting credit to new customers and letting them build upon that credit with a solid payment history can help you keep the right kind of customers, the ones who actually pay their invoices!
Speaking of payments, you will want to set up reminders a few days before a payment is due. If you’re using an automated system, such as Pipefy, to do your accounts receivable management, you can easily setup an email reminder to make sure that your clients are aware of an impending due date. Keep these interactions polite and simple. No need to badger them if they are not yet late.
If a payment is indeed late, don’t let it stew. Send a late notice the day after a missed payment. Pipefy’s Accounts Receivable Template already comes with two email template samples to be sent when the payment is a day and a couple of weeks overdue. The later you draw out the process the longer it will take you to get paid and the more likely that you may not get paid at all!
If you still haven’t received payment after you send a late notice, it’s time to get on the phone with your client for collections. Many clients will have excuses at the ready, some may be legitimate and some may be bologna! Not matter what, be polite and professional. There’s no need to get nasty with a client over missed payments.
If you have a customer who you feel may be going through a financial hardship, it’s always nice to offer an installment payment plan. This will help both you and the customer. You will be getting a portion of your money and the client will get more time to pay while respecting you as a company for lending a hand to them in their time of trouble.
There will be some cases where customers refuse or simply cannot pay. These may cause their account to be seriously delinquent. It’s ok to ask for help from a debt collection company or a lawyer to ultimately get the money that is owed to you.
Manage your Accounts Receivable with Pipefy!
Pipefy’s Free Accounts Receivable Template allows your company to have a single standardized channel so all your company’s departments may request billings.