It’s a fact of human living and interaction that the systems by which we operate need regular maintenance – or sometimes even replacement – in order to serve us more efficiently. This fact certainly applies to your accounts receivables system and processes.
According to an informative article from Inc.com, “If you’re spending an hour a week on managing your billing process, experts say that something is amiss. Slow collections can cost you tremendously over time, in the form of wasted labor, poor cash flow, and inaccurate financial forecasts. Plus, a solid accounts receivable system has a tendency to be self-fulfilling: The more professional your billing system is, the more likely it is that your clients will pay up in a timely manner.”
You shouldn’t have to move mountains to collect money from clients who are past due on their invoices. If your accounts receivable system is a few years old or you are still just using an Excel spreadsheet and invoice letters, then you might want to seriously consider making some system and process upgrades to ensure more prompt and in-full payment.
There are a number of reputable accounting programs that you can use to streamline your accounts receivable system. Doing so becomes especially important if you’re sending out more than a handful of invoices per week. If you’re not entirely comfortable with any new software options, you can take a course or hire a financial or business coach to get you started.
Do not, however, let someone else do everything for you. According to San Francisco-based financial advisor Kathryn Amenta, “I would recommend a business owner understand their finances fully before they turn it over to someone else to handle. It’s super important as an owner to have a finger on the financial pulse. That’s the bottom line – that’s why you’re in business.”
Upgrading to a more efficient system using modern and reliable accounting software can help you better manage your accounts receivables so as to track how many invoices have been sent, how many have been viewed, how many have been paid, and how much remains outstanding.
Time is money. Refining your accounts receivable process and upgrading your accounting tools is a must if you wish to avoid unnecessary losses.
The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.