In this third article of our four-part series on Best Practices Fundamentals we’ll take a look at a third and final set of best practices tips from the website of Solid Growth Accounting Services.
“10 Accounts Receivable Best Practices”
- Email Invoices — This will ensure your customers receive your invoices immediately, avoiding mail delays
- Shorten Payment Terms — With the widespread adoption of email communication and electronic payment methods, businesses are now more commonly specifying “Payment due upon receipt”.
- Have EFT and Other Payment Options – By offering Electronic Funds Transfer (EFT) you will enable your customer to deposit payment directly to your account. Also consider using PayPal and/or credit cards.
- Establish Credit Policies — If you were going to extend a customer credit, it would be a good idea to assess their ability to pay.
- Review Accounts Receivables Regularly — Monitor the age of your receivables, and systematically follow-up on any accounts that are past due.
- Use the Telephone — Follow-up unpaid invoices with a phone call if payment has not been received within a reasonable period.
- Maintain A Collections Record — For each over-due account, keep a log of when follow-up calls or emails were sent, along with a record of customer’s responses to follow-up calls.
- Offer Discounts For Early Payment — Payments are often made first to companies that offer discounts.
- Use A Factoring Service — Using a factor is like selling your receivables to a third party at a discount. The costs involved with this method may be justified by greatly improving your 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.