The goal of business is to earn profit. This is the reason why people involved in the business scene must be able to manage money matters efficiently. Having accounts receivable both good and bad points. Good in the sense that the business is running with sales and customers. Bad, because there are liquid assets that you currently do not have in hand.
Moreover, what you need in a business offering credit to customers is a good system or a small business software where you can manage you account receivable as easy as it can possibly be. Collecting amounts and balance due can be difficult if you do not know how much you are owed and the date of its due. It is beneficial in practicing business that you have the information your customer need at your fingertips. It creates a lasting impression, that is a very important spice in long term business relationships.
Here are some steps that will help you list, manage, and collect your account receivables:
Use a Small Business Accounting Software.
Take advantage of the technology by using accounting software that will allow you to track your receivables and collections over a computer or through a smartphone. You can use Quickbooks at your heart’s content, but there are also varied choices available that you can utilize anytime.
Record Sales ASAP.
The sooner you list the business invoice of your clients and customers, the sooner you can receive payment. It is also advantageous when the goods and services are fresh in the minds of your customers which is a good effect of a prompt invoice.
Establishing Concise Credit Policies .
Before you resume business and extend credit to your customers, it is an SOP that you will assess if they are capable of paying you for the goods/services you provided to them. Business is business, and you should provide your customers with concise credit policies to avoid future monetary problems.
Payment Methods .
Most customers wanted things processed fast, a reason why we find ATM machines truly useful. Some customers love to take business easily by being provided with alternatives payment methods such as online services like PayPal, credit cards, and official bank accounts. There are also some who would better meet you up and pay cash. Either-way, making it easier for them is the key for a good and continual business.
Regular Review of Your Receivables.
Being aware of the amount owed to you is important in easily seeing delinquent accounts. Delinquent accounts should be followed up to prevent ruining your business’ systematic flow.
In every business, the owner aims for success. Accounts receivable management is relatively essential to provide realistic and time-based report on the performance of your business. A customer management software is a very useful tool, if you want to easily review and track your success any time, any place.