We get it, too many business owners’ accounts receivable can be one of the biggest headaches. Increasing cash flow is generally one of the hottest topics, but most don’t realize that these two are a double-edged sword. If your accounting department doesn’t have a strong plan of action in place as to how to collect aging receivables, the chances of collecting any of your debts are quite low. Here’s how to effectively convert your aging receivables into cash flow and boost your business with a few simple steps.
Establish Aging Reports
One of the key steps is determining which invoices are outstanding, who is yet to pay, and which client has passed the payment due dates. Establishing and continuously running aging reports help you do just that. It offers you a concise status of your accounts receivable and can even offer you a more clear view when it comes to cash flow forecasting.
With AR Collect’s A/R Aging summary, you are able to view all relevant aging data and information based on your client’s account. This reporting section includes the current amount outstanding, the payment periods in which payments were received, as well as the notes history of the specific client. To view more about this reporting functionality, watch this video.
Establish a communications strategy
You forget to send that email, we get it, we are all human, we forget things. When it comes to receivable collections, however, forgetting to send the invoice or the 30 days past notices will just escalate the aging process. Just like you, your clients are busy, and if you don’t establish a communication channel with them, they may easily put that payment on the backburner.
Creating a strong communications strategy with your client can not only help you establish a more direct method of communicating their past due notices, but it offers an extra level of credibility and accountability. One of our favorite ways to establish a clear communications pathway is with the use of automated emails. From invoicing to past due notices and payment methods, you can completely automate this process and establish a clear communication plan with your clients. WIth AR Collect, you are able to completely automate your email strategy, with our convenient customizable templates. Read more about how customizing your customer’s journey through email automation can help unlock your cash flow.
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