Day-to-day operations of any business are dependent on the efficient management of the accounts receivable services. It is the accounts receivables which bring cash in to the business and enable a business organization to bear its operational costs like payroll, production costs etc.
The latest reliable business studies have concluded that there are a number of business organizations who are facing problems while collecting their accounts receivable. Below mentioned are some steps which can help in managing the accounts receivable in a professional manner:
Go through the old records – Before venturing in to a business partnership with a company, you should go through the previous credit records of the organization. If a company has a history of unpaid credit then selling goods or services to such a firm will not be good idea.
Payment terms must be firm – Before delivering the goods to an organization, the payment terms should be made clear. In case any discounts are made available to the clients, they should be eligible for them until a particular date. Similarly in case there are any penalties for late payments then they should be implemented firmly. Giving the opportunity to business organizations to make late payments can prove to be detrimental for your business.
Utilize electronic technology – In the earlier days, invoices were sent to the debtors by post. This caused a lot of delay in receiving payments. But now the option of sending bills through emails has emerged. More over emails can also be used as reminders for making the client aware about the due date. It can help in eliminating the opportunities for excuses which the debtors generally make for late payments.
Offer all the payment options available – At times the payments get delayed due to lack of payment options offered by the creditors. By offering all the options like electronic funds transfer, PayPal, credit cards etc., the chances of receiving payments at the right time can be improved.
Utilize outsourcing accounts receivable option– Outsourcing the accounts receivables is the best option for businesses that are finding it difficult to handle these processes or want to concentrate completely on the core activities. If you do not have the time or staff for performing these activities efficiently, then outsourcing is a good option. Outsourcing firms have access to proficient staff and the latest technology for performing these tasks. The third party firms based in developing nations like India also charge a lesser remuneration than the local rates in developed nations like UK, US etc.
Accounting to Taxes has emerged as a leading provider of outsourcing accounting services to manufacturing companies. In the last eight years, they have earned the goodwill of their clients by adhering to deadlines and the desired quality standards. They have access to proficient staff and the latest software for fulfilling the needs of clients.