Running a successful small business is not an easy task and involves coordinating numerous elements. An important part of running a small business is having consistent cash flow and improving it over time. In order to achieve this, you need to have an efficient accounts receivable process, which includes having your customers pay you in a timely manner. Luckily, there are a few simple ways to improve your small business’s accounts receivable processes.
Electronic Is Best
When it comes to having an efficient accounts receivable processes, you want to create an online portal for customers to pay bills or even easier, enable online payments in Quickbooks and allow your clients to pay their invoice as soon as they receive it without having to even write a check. Having customers pay their bills electronically ensures that the money reaches you immediately, compared to traditional mail which can take several days for you to receive a payment. You may also want to consider investing in software that automates many of the accounts receivable processes, which eliminates human error.
Multiple Payment Methods
If you want to improve your accounts receivable processes, then you want to offer multiple payment options to your customers. Even though some might choose to pay with a paper check through the mail, you should offer several ways to pay online. You should allow customers to pay invoices through check, ACH, or credit card. One thing to keep in mind with credit cards though, is the accompanying credit card fees; talk to your financial guru about the costs vs. benefits.
Review Customer Data
An effective way to improve your accounts receivable process is review and audits your current customer data. You want to maintain accurate customer data, such as email and home addresses and their credit limits. The last thing you want is to send bills to the wrong address, which results in late payments. Make sure you are conducting regular audits on your customer’s payment information.
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or firstname.lastname@example.org so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and Google+.Posted on