When it comes to accounts receivables, we as business owners tend to count it as one of the largest liabilities, due to its tendency to eat up a lot of manpower, effort, and cost. Although it’s classified on the asset side of the balance sheet, in practice it can often lead many to write it off as something that’s non-convertible- leaving a low level of cash flow and liquidity.
With the right processes and tools, however, you are able to triumph A/R as the cash flow hero that it is and help set your short-term, and long-term financial goals in motion. Here’s how to start viewing your Accounts receivable as the powerful asset that it is.
Improving your Billing and Notice periods
Accounts Receivable can become a very powerful asset if the communication process has been successfully set up. Invoicing is generally the first step within this process, and should thus be one of the most important components. The easiest way to get your clients to pay is to invoice them accurately, on time, and often. Through the use of automated emails and invoicing, you are able to continuously follow up on clients and send them past due notices during their payment period. Tools like AR Collect can send out automated emails prompted based on 30, 60, and 90 days past due notices, or based on your collection terms. This reminds the client about their payments that’s due, as well as ensures that your notices are sent out on time, every time. Click here to learn more about how to automate your invoicing to help increase your turnover time.
Make payment easy, logical, and without any complicated steps
Just as invoicing is important, the method of payment and manner of payment is also extremely important. Creating a payment process that’s easy and logical is the first step in creating an effective payment system. WIth AR Collect, you are able to provide your clients with an email invoice, which contains a direct payment link- creating a fast and logical payment process for your client. This limits the need for your client to interact with third parties. This helps ensure that you get paid faster- every time.
Choose the cloud
Cloud-based systems are everywhere these days- and for good reason! Not only do these systems offer you direct access to your data from anywhere at any time, but it also simplifies the collections process A LOT. Your team is able to collaborate with the accounting team at any time, and a detailed history of information is stored, ensuring that you are able to access historical account data.