Having to ask your customers to pay their bills isn’t any fun. So that’s why having a professional and organized system of accounting will do much to relieve you of unnecessary collections woes.
Establishing a solid accounts receivable system is vital because it sets you up for the future. In this first of a three-part series of brief articles we’ll discuss how to incorporate some basic best practices in setting up and managing your accounts receivables.
It’s likely (we hope) you already have some kind of accounts receivable system in place, no matter whether it’s an Excel spreadsheet or one of the several popular business accounting programs that are on the market. While it is recommended that you modernize and acquire accounting tools that facilitate the greatest efficiency for your business (efficiency translates into money saved), at the core of having a system is the need for it to be well organized. A disorganized system will cost you money rather than save you money.
Whatever system you decide upon, accurately enter all your billing information into it. Your most basic setup should have a listing of all open invoices and balances, as well as the capability to perform billing on a monthly, weekly, or per-project basis.
Make sure that you have a process for printing hard copies of your customer invoices. While it is standard practice nowadays to send invoices by email, some of your customers might prefer a printed and mailed invoice. You may want to consider sending invoices both by email and regular mail. This will provide both a convenience to your customers as well as a reinforcement impressing upon them that you are on top of matters.
Being prepared and organized with the basics from the very beginning is your most important foundation for building a productive relationship with your customers and securing healthy cash flow.
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.