3 Tips to Collect Cash Quicker
Waiting for delinquent accounts to pay is a drag and finding a solution to collect your money can take months sometimes, and if you aren’t vigilant, you may never be paid. There is hope! Accounts receivable management doesn’t have to be complicated. Here are our three tips to get paid faster and on time more often.
Stay Organised from the Start
Perhaps the most crucial step, being diligent and organised in your accounts receivable management is the best way to ensure that your clients pay on time. Stay organised about who owes money, how much credit they are allowed and any other details pertinent to the business relationship. We recommend utilising an invoicing software to track and manage all of your accounts receivable.
You Set the Credit Limit
It’s your business, so you get to decide how much rope you give each of your clients when it comes to credit. Be sure to run a credit report before opening an account for them to know who pays on time and who doesn’t. We recommend starting with modest terms at first with a promise to be more flexible in the future after a payment history has been established.
Be Needy
You own the business and these customers owe you money. While some business owners may be more polite than others, if you want to receive your payment sooner rather than later, you have to be on top of it. Utilise a CRM platform to communicate and manage your relationships to ensure you get paid on time or soon. Chances are, many customers just don’t realise that they owe money. A reminder will ensure they are aware and will pay much sooner.
Hopefully, you found these tips useful. If you are ever in need of bookkeeping services or advice, don’t hesitate to contact us!
Joe Boyd & Tony Barakat
ABJ Business Solutions
M: +61 401 991 495
M: +61 405 534 934
E: tbarakat@abjsolutions.com.au
