One of the most important parts of running a successful business is making sure that you are getting paid on time by your clients. Your cash flow affects all aspects of your business and you need a streamlined and efficient AR process to keep the money coming in. It is a good idea to set up your AR process when you are starting your business so that customers understand your payment terms right from the beginning of your relationship with them.
Not setting up your AR system from the beginning can lead to extending credit to unqualified customers as well as not following up on past-due accounts in a timely manner. Poor AR practices take time and money from your business that can be easily avoided. Not paying attention to the accuracy of bills and invoices and not issuing reports to find potential problems can have far reaching consequences for your business.
Optimizing these Accounts Receivable Processes will benefit your business:
Make sure payments are applied correctly to the correct customer and invoice so that future disputes can be easily settled. Create a billing dispute process so everyone knows how to handle disputes when they arise.Make sure payments are applied correctly to the correct customer and invoice so that future disputes can be easily settled. Create a billing dispute process so everyone knows how to handle disputes when they arise.
You don’t have to make these changes to your billing and collections process immediately but any steps that you do take will help to optimize your accounts receivable and will pay off in the future.
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