All successful businesses rely on automated accounts receivable process which is their life blood for cash flow increase. To improve bookkeeping process, the below simple tips shed light on common pitfalls that hinders your accounts receivable.
Prompt Invoices
Cash flow for small businesses depends on prompt invoices accurately. The more quick we send the invoices, the same rhythm we can expect in payments from the customers. Also, immediate invoicing to your customers is important to make sure that your services are kept noted.
Sending Monthly Statements
Monthly statements are essential for the frequent customers you work. Apart from Invoices , if your customer receives an account statement on each month, they clearly know that when they need to pay. And also reconciling those statements in order to make sure that they have all your invoices.
Monitoring Overdue
An aging summary report helps you to know the customer account balances at a glance, thus, you can view the accounts which are overdue by 30 days, 60 days or even longer. Overdue invoices becomes the less cash flow in that month. The main objective is to stop the failure of 30 day invoice payments getting extended to 60 days and more.
Overdue Chases:
It might be difficult to make a call to the customers on reminding their overdue balance, but it is absolutely essential for providing them reminders before the invoice comes due. Sometimes, customers will not make payments because it might slipped in their mind with their payment processes. Thus, until you make a call, they won't know the issues. Automating these reminders improve the return rate quicker. Automated accounts receivable management & improved knowledge of the process is a breeze to have the customers paying on time, everytime.
