Business owners spend a great deal of their time in building a strong business, making sacrifices, alterations, updations along the way. A crucial aspect that drives business is steady growth and the profitability which is a part of the accounts receivable management service.
So,what exactly is accounts receivable service? Accounts receivable service plays a major part in getting your business the deserved capital. This essentially points to the fact, that the customers you extend your services towards must also pay for them, bill them, and keep a clear communication in case of pending payments. A mismanaged and vague Accounts Receivable process can cost any business major cash flow troubles.
The prime rule or the guideline that guides effective Accounts Receivable service, suggests that you have a definite plan devised for your client. A consistent and transparent Accounts Receivable process ensures that your business suffers no losses or late payment situations due to lack of knowledge of the customer. This encompasses ensuring the new customers are on-board with your vision, sending out regular invoices offering a clear understanding of the amount to be paid, and the duration of the services offered.
Here are some tips to help you build strong Accounts Receivable Service:
- Know who your clients are – It is imperative that you dig deep into the credibility of your client. Do some research, run a credit check, put their business reputation to test. You can even reach out to someone who is in business with them. You can know better if you research better.
- Written Document as your agreement – Spell out every detail of your contract. Mention the intricate details of payment clearly, the date you would be sending out the bill and the amount of time you would give your customer to clear payment. Mention the legal actions that can be administered on the client in case of breach of terms.
- Send invoices on time – After a task is done, prepare the invoice for the same.This eliminates any chances of confusion in the future. Send them out on the date mentioned in the agreement and stick to being regular with the payment task.
- Easy payment options – Convenient payment options have known to boost the payment rate by about 35%. You must present your clients with options like credit card, debit card, PayPal payment, as well as direct debit. Choose options that suit your client’s interest the best.
- Maintain clear records of dues – Keeping a list of invoices can be of great help to you when finding the clients whose dues are pending. Accounts Receivable service is important since the payment by clients help with the cash flow.
- Devise a plan for effective Accounts Receivable Service – Decide what actions you would take in case of late payment. Send out multiple reminders, if the need be, make calls to your clients. You can also send out email reminders. What is important is to have a clear strategy on how to tackle late payments.
It can be an overwhelming task for your in-house team to handle Accounts Receivable task. It is due to this fact that most businesses whether mid-sized or large-sized prefer to outsource Accounts Receivable Service, it effectively diminishes the chances of error and offers your business the diligence of expert and experienced time with subject matter expertise. If you wish to outsource your Accounting tasks in Australia, then Whiz Consulting is your one-stop solution. Get in touch to know more about the services offered by us.