7 Top Accounts Receivable Tips to Quickly Collect Payments

1. 7 Top Accounts Receivable Tips to Quickly Collect Payments The manual process of mailing your invoices is time-consuming. After mailing the invoices manually, it is imperative to match the payments to avoid the errors in calculation. The manual invoice handling process is time-consuming and associated with a high risk of errors. When the number of outstanding invoices keeps on increasing, then it is recommended to switch on to the automatic accounts receivable software. Here, in this pdf, we are going to describe various tips and practices to speed up the payment collection process of your company. It is imperative to maintain the continuous cash flow in the business so that it keeps improving. 1. Automate Accounts Receivable Process You should determine the time consumed by your AR team in creating, sending, and tracking your invoices. If your accounting staff members are taking more time in dealing with customers’ inquiries and collect payments, then you should invest in automatic accounting software. The efficient Accounts receivable automation solution can make the payment collection process highly efficient and quick. The automatic solution will reduce the probability of errors and also help in reducing the number of outstanding invoices. It will

2. transform the entire system simple and easy to navigate dashboard. The automatic system will reduce the burden on accounting employees. A platform like accounts receivable collections software will help in an effective invoice presentation and also integrated it with your ERP system.

3. 2. Offer Discounts For Early Payments The other way to improve your payment process is to offer discounts to your customers for making early payments. You can offer some kind of incentives to your customers so that they can make payments as soon as possible. For instance, if a deadline is of 30 days and any customer makes payment before the day, then you can offer a discount of 1% or 2% on the total bill. This will encourage your various customers to make payments as soon as possible. 3. Create Appropriate Collection Plan You must have a perfect collection strategy. A good plant and perfect strategy will help you to collect payments in a smarter and faster way. A good payment collection process will help you if any problem arises. You should send invoices in an electronic form so that you can easily track whether invoices are delivered, opened, and viewed by your customers or not. You should also make sure that you set an automatic reminder to check the payment status after three days, week, and one day prior to the due date. It will be totally dependent on the terms and policies.

4. The automatic accounts receivable system will provide a portal where you can communicate with your customers directly and record their responses, as well.

5. 4. Create A Perfect Credit Policy Well, all customers are not the same, and it is very important to understand the behavior of the customer. The dashboard will help you to keep a check on the credit history of your customers. The customers’ credit history will help you to determine whether this customer makes payment at the right time or not. It will give you a better chance of making on-time payments. The credit approval process will be based on the credit profiles of the customers. You should also make sure that your accounting staff is regularly reviewing the process. If you are dealing in a high growth industry, then you should review the credit approval process. A similar situation is also implemented during the economic crisis.

6. 5. Provide Different Payment options All business owners should provide different payment options to their customers so that they can make a payment without any problem. If you do not provide the options for making payment, then your customers will feel irritated.

7. It is important to consider the convenience of your customers. You should also allow them to make payments by using traditional methods such as cheque or cash payments. Some customers do not like to use technology payment methods, and they want to make payment by using old methods. 6. Strategy to Resolve Billing Dispute In some situations, business owners have to face disputes with customers. All business owners should prepare them in advance for these kinds of situations. You should create a billing dispute resolution process so that you can easily deal with the situation where customers raise problems. The accounts receivable solutions should be prepared to handle the dispute at the invoice level and line-item level. It will not just help you to streamline the complete payment collection proves and also improve customer satisfaction. When the queries and complaints of customers are resolved, then they will appreciate your business. They will trust your product and services. 7. Keep an Eye on AR KPIs

8. It is vital to keep an eye on the Key Performance Indicators (KPIs) of your business. The KPIs will help you to determine whether you are going in the right direction and making the right decision. If you compare your account receivable KPIs regularly, then you will get to know what is the current status of your company.

9. You can easily compare the performance of your company with others. You can also compare the business performance of the current month and to previous months. You can easily determine whether your company is growing or need more improvements. The automatic accounts receivable platform will help you to keep track of the AR metric. It will help you to make the right decision by doing proper analysis. Therefore, it is recommended to keep an eye on the key performance indicators of your business. Final Words The above-mentioned tips will definitely help you to streamline the cash flow in your business. By implementing these techniques, you will observe that the payment collection process will speed up. You can also try free accounts receivable software that will reduce the probability of errors and automate the process. These techniques will not just streamline the AR system, but also help to improve the customer experience.