It goes without saying that having an organized accounting system is critical to ensuring the proper functioning of any business. And in particular, having an organized accounts receivable system is an essential element to maintaining steady cash flow and avoiding unnecessary collections headaches. In this and the next several articles we’re going to offer some basics on the foundations of a well-functioning accounting system.
We’re going to make the safe assumption that you already have some kind of an accounting system already in place. This could be anything from a simple Excel spreadsheet setup, to an accounting program like Peachtree or QuickBooks. While we recommend you acquire a modern accounting system, what’s most important is that your system be extremely well organized. Here are some key basics:
- Whatever system you use, accurately enter all your billing information into it
- List all open invoices and balances, being sure to have 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.
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.