Top Five Ways to Make Sure Your Accounts Receivable are Collected Swiftly

Before we delve into the strategies of how to make sure you are able to collect most, if not all, your accounts receivables, let’s make sure we understand how they are different from revenues and why they are more important. Revenues are what amounts are entered as sales in your accounts, the price of products multiplied by the number of products. Accounts receivables, however, are the amounts that are still owed to you by your customers in exchange for the products sold. This means that once the sale is made, the revenues are generated, but until the money is transferred, the transaction isn’t complete.

What it means for your business is, that even if your sales are sky rocketing, if you are unable to recover the actual hard cash in exchange for those sales, your business will not be any better off. You need cash in your bank accounts and vaults to be able to pay for expenses, or there is only so much you can do on credit. Not being certain of the spare funds can also make you lose out on valuable investment or expansion opportunities. So let’s go over some ways you can ensure maximum and earliest collection of accounts receivables.

If you slack on your end, the entire process would slowdown. Therefore it is imperative that you stay on top of the collection game as well. Keep in mind that sending invoices to your debtors does not make you appear greedy, but only efficient. Secondly, it reminds the client that the project is now finished, and you have held up your end of the deal and now it’s their turn. This is in fact an indication of higher professionalism than anything alluding to forcing out a payment.

One other way to ensure early collection, especially if your project is of a long-term nature, is to divide the total invoice payment into smaller chunks and keep sending them as and when every part of the project is completed. This way your clients will not feel the financial burden, and you will get your money quicker. If you send one time or several invoices, make sure that they are not confusing in terminology, timeline, or anything else. If the invoices are clear, there will be higher chance for to argue for payments and lower the chance of your clients trying to trap you into verbal difficulties and delaying payments.

The easier it is for your customers to pay you, the less chance there will be for unnecessary delays and bottlenecks. Similarly, from your end as well, a simpler and quicker process will also get money to your accounts faster. One of the ways to do this is to offer several payment options to your clients. Some might prefer checks, while some appreciate the payments through direct deposits. You might also want to keep open options for smaller clients, and smaller payments. Unless you are strictly a B2B business operating in producing fertilizer plants, you should be open to serving smaller clients, and keep payment options open to make them feel welcome.

One of the key things to facilitate payments of accounts receivables is having an up to date and accurate record of the amounts that you are owed, that you have received, and that have the potential to become bad debts. It goes without mention that any confusion in these three different categories will not only cost you money but also create a wedge between you and your clients. Keeping up good relations with the customers is really half the battle here, so make sure not to create hurdles for them or for your own staff, and the easiest way to do that is to employ state of the art accounts receivables software. It will also keep your money records on your finger tips allowing you quicker financial decisions expediting your business growth.

Sometimes it is better not to indulge into contentious matters, especially if your business is dependent on customer loyalty. Furthermore, there is ample evidence that when companies use their in-house employees to force payments out of defaulting creditors, it is far less fruitful instead if there are external players involved. This is where you can take help from outsourcing companies providing accounts receivables recovery services. They have qualified professionals that who can manage to extract payments in varied ways without spoiling your relationship with your clients and even without having to indulge in threats or unpleasant means.

You would also benefit by knowing that BPO companies are not only well versed in final process of the accounts collection, rather they have the best technology as well as experienced and qualified professionals for each step of the way. We at Intersoft BPO have just the right software and personnel for your company. Get your quotes today!