Collecting Accounts Receivable

The key to any businesses success is perfecting one’s skills at collecting accounts receivable especially nowadays when we are all facing a tough economy. When it comes to receiving payment from your customers a business owner needs to have a good approach and a good attitude.

The person that is responsible for keeping a business running smoothly needs to have a good relationship with the businesses clients and also needs to enjoy collecting accounts receivable. However it is not only attitude that counts as there are other techniques that need to follow suit such as:

• You need to bill the client immediately after completion of a job or goods delivered as this bill will remain fresh in the clients mind

• Payment should be collected within thirty days of completion or purchase as the longer you leave it the harder it becomes to obtain the payment

• Always make sure your invoices are correct as errors provide an opening for dispute and late payments. Make sure the invoice states that interest will be charged on overdue payments.

• Interest charges usually encourage a customer to pay promptly

• Should a customer not pay on time then a reminder call to the customer should be carried out as customers are far more likely to respond to a phone call than an account sent to them

By calling your customers and listening to them you can also learn a lot from their complaints as well as ideas and you can also assess whether to give the customer extended credit or terminate their credit line. New customers should pay on a COD basis and if they are good customers you can then give the customer a credit line.

Accounts Receivable Software