When you have a good strategy for your accounts receivables, you lessen the stress in your business. When you have continuous cash flow in for your business, you won’t have to resort to using your reserve funds to pay for your employees, maintenance, and other service expenses.
Have you experienced difficulty in handling accounts receivables? Have you tried calling and collecting unpaid invoices from your clients?
Here are ways to better manage your accounts receivables.
1. Clear Payment Terms
As much as possible, have your client sign even a simple contract with clear Terms and Conditions.
“Did you read the terms and conditions at the back?”
It doesn’t hurt to ask them to double-check the details to make sure they fully understand.
Keep all documentation for future reference.
2. Invoice and Reminders
Send an invoice immediately after your services are rendered. You should double-check all the information in your invoice before sending it.
It’s essential to monitor your process closely.
Service > Invoice > Follow Up
Make sure that all communication is executed on schedule.
3. Collection Plan
Create a plan on how you will handle delinquent accounts. Reach out to the contact persons and handle their accounts accordingly. You can create payment plans to help them out.
If you have delinquent accounts that go beyond what your efforts can do, you can have a collection agency collect them for you.
Accounts receivables should not be a complicated matter to handle. If you have a good system in place, it’s easy to manage your cash flow.
If these accounts get complex for you, you can always reach out to a collection agency.
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