HOW TO MAKE YOUR ACCOUNTS RECEIVABLE DEPARTMENT MORE EFFICIENT
Are you looking to make your business much more efficient? Who isn’t? Let’s take a closer look at you can achieve this goal.
QUICKBOOKS OR PEACHTREE
Are you going to be sending out a hard or digital copy of something? Are you going to be sending out lots of material all at one time? Get your hands on one of these two tools. Either one of these tools will be a lifesaver. This technology can help you understand better how to manage your funds.
NEVER GIVE OVER THE CONTROL
This is one recommendation I highly encourage. It’s okay to hire an invoice factoring company; but, never give over full control. If you are going to own and operate your own business, you need to have a full and complete grasp on everything.
The idea is to keep your financial person on payroll for advice. Never let him/her control everything. Why? The decisions will be based on their needs/wants, not yours. It’s your business, Take control of it; especially, when it comes to the financial end of things.
ONLY INCLUDE IMPORTANT INFORMATION
Your clients do not want to be bored with fluff. When you send out your invoices, only include what is important. Most clients will not feel inspired by a company who gets foggy with the data.
Always be gracious with your invoices. Also, be clear. Most clients want to hear something straightforward. If any client feels that you are beating around the bush in any way, they will go elsewhere.
DO NOT MAKE IT CONFUSING FOR YOUR CLIENTS
When asking for a payment, be polite and humbled. This will get you paid much faster. Choose your words carefully. Do not just use words like “Due immediately.” This will turn your clients off. It will encourage them to be late. When you demand something from someone, you end up causing chaos and conflict. This is not something you want from your business; especially, if it’s a start up.
Make sure you instill trust with your clients. Give them some flexibility. This flexibility should also be included on the invoice. Your clients won’t feel so pressured when conducting business with you.
This is a big issue with the accounts receivable department. Always be op top of things. If you are not doing this yourself, hire someone proficient in this type of skill and detail. You need to know when an account was open. You need to know when the bill was sent out. You also need to know when each payment is due. You also need to keep track of all your clients. Which clients are being diligent with their payments? Which clients are sometimes late? Which clients are always late? You need to know which clients you have to keep no top of.
This is your business. You have to be the one to put your foot down, in a nice way. You are the one in control, not the client. If you do hire someone to look after this aspect of the business, make sure he/she knows the job inside and out.
SOME ENDING THOUGHTS
Owning and operating your own business is a pretty cool thing. In order to succeed, you have to keep on top of everything. The financial department will always be one of your biggest headaches. If you go into this early no with a clear way of think and the right staff, you will be just fine.