Accounts receivable management is a field where most of the employees stumble, as it involves collecting payments while maintaining relationships with the client
FREMONT, CA: Accounts receivable management is very simple if the employees are diligent, specific, and consistent. The more systematic the process of AR management is, the simpler it becomes for the finance professionals. Some basic steps to ensure that the company’s AR management is set like a pro:
Stay Organized
If the finance professionals need to excel in accounts receivable management, they need to exercise caution while extending credit to vendors. As net terms aren’t for everyone, it is advised to start setting up the professional credit application that allows the collection of as much info as possible on the customers or vendors. Once the customer is decided, professionals can move forward on credit with a customer and be sure to have a signed contract that embodies all the operating terms. It is advised to use top-notch invoicing software that has an excellent method to keep an eye on all the accounts, invoices generated to customers, and executes seamless operations.
[vendor_logo_first]Use the Credit Limit
Remember to utilize the credit limit to its full extend and take advantage of having this kind of power. Commence the extension of the credit line on more moderate terms with the customers and allow them to work their way up to attain more flexible terms for a credit line. It can be an incentive and an opportunity to understand the customers’ payment habits before giving them more room to function. This is considered the best way for accounts receivable management to ensure that customers practice proper payment behavior.
Power of Creative Communication
The customer relationship management game has undergone a full transformation due to the doors opened by technology. If a strong and healthy relationship is built with the client, they will most probably avoid jeopardizing it, and the professionals can be creative to use this fact and forge connections with clients. Social media, personal messages, and other media can be used effectively to convey greetings and updates. Even emails can be sent for checking in and nurturing the relationship beyond the business.
Start Early
Create a system that will remind the customers about payments well before the deadline. If it is a week before the payment due date and the customer still hasn’t sent a check, remind him with a friendly email, reiterating the due date and various methods to make the payments.
Avoid Waiting:
Accounts receivable management 101: when an expected payment is late, don’t wait. The longer the time provided by waiting for payment, the harder it is to collect.
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