Every business needs to manage their cash flow to make sure they can pay their bills and keep the lights on, and one of the biggest drains on cash flow that businesses have to deal with is having an Accounts Receivable (A/R) problem. If you aren’t managing your A/R quickly enough, your clients will be slow to pay, or not pay at all. If you need help keeping your accounts receivable under control, these three tips will help you out
1) Make a plan
Some experts will tell you that it’s best to wait until your cash flow is positive (where positive means more money coming in than going out) before taking on accounts receivable management. However, many of us get so caught up in cash flow that we forget about our accounts receivable. Once a customer has made a purchase from you, invoicing them for payment shouldn’t be left until months later; instead take some time each week or month to make sure you have received payments from all customers and that everything is running smoothly with your accounts receivable. Doing so keeps your business moving forward – and prevents headaches down the road. Despite how big an impact accounts receivable can have on a company, it often gets ignored because businesses are too busy focusing on other areas such as payroll and inventory.
2) Establish good relationships
Our online invoicing software makes it easy for clients to understand and pay their bills. Setting up recurring invoices is a great way to keep your accounts receivable under control by ensuring you have a steady stream of incoming funds. With Invoicera, you can setup recurring invoices in minutes, so you always get paid on time. The more effectively your accounts payable department manages accounts receivable, the more smoothly business runs at your company. By building relationships with customers that are based on trust and mutual understanding of both parties’ responsibilities, you can establish an effective accounts payable department that keeps customer service high while minimizing costs – all things that will boost customer satisfaction and build long-term business success.
3) Automate your invoicing process
There are several online invoicing services available, but Invoicera is a standout when it comes to automating your accounts receivable management process. If you’re using it effectively, not only will your team be able to generate high-quality, professional invoices at scale—you’ll also save time by managing them more efficiently. Once you sign up for an account, simply add all of your vendors and customers to build their profiles; start generating and sending invoices via email or mobile app; set payment terms and even access reports and analytics on payments made. It all adds up to one less headache that can plague small businesses today. (Oh, did we mention that there’s no contract required? That makes starting and scaling easier than ever.) For any companies looking to send out online invoices here's some advice: As soon as you receive an invoice from a vendor, go ahead and enter it into your accounts payable system right away. This will allow both departments to track its progress. The reason why many companies use invoice software is because they handle that part of accounting as well which means less work for them!
Although Invoicera has many features designed to improve your Accounts Payable and Receivable workflow, there are three things you can do as a business owner or manager that will simplify your AR process and help keep your accounts receivable under control. These tips will help reduce mistakes, speed up payment cycles, and save both time and money.