Techniques to Improve Business Debt Collections

One of the most significant problems companies face is not getting the word out about their product or making a sale, it’s actully getting paid for the work that they do or the services they provide; and this causes serious problems.  When customers do not pay within the agreed upon credit terms cash forecasts are thrown off, cash flow is slowed, and it becomes tough for a company to meet their financial obligations. When customers continue to neglect payment, the cost of carrying bad debt, write-offs, and legal action can even further exacerbate the situation. By changing the way you think about accounts receivable and putting into practice some business debt collections best practices, you can quickly and easily put an end to this cycle in your organization. Continue reading

Top 5 Most Downloaded Resources for Best Practices in Accounts Receivable Collection

We know you’re busy and no matter how important improving your accounts receivable is, it can be hard to find the time and, let’s face it, the energy, to sit down and sift through the countless articles and resources about best practices in accounts receivable collection. To make your life a little easier, we’ve compiled our top 5 most downloaded accounts receivable white papers to help you speed up the research process so you can put these best practices into place and start seeing results. Continue reading

Accounts Receivable Email Templates and Examples

How many times do you communicate with customers regarding past due invoices? This is an important metric to understand because studies show that companies who spend more time communicating with customers have, on average, have much healthier receivables, lower DSO, and less bad-debt. Email is a simple way to get in front of your customers regularly and provide them with all of the information they need to submit payment, but the timing of those emails and the language used will impact if and when they pay you. Email, like all tools, when not used correctly will not work.  Below are a few accounts receviable email templates and a brief explanation of the different types of emails you should be sending to customers. Continue reading

Automate QuickBooks Accounts Receivable Management for Improved Cash Flow

Sure, your QuickBooks system gives you a place to manage the financials, but it does not help you with the real problem- there is never enough time to get everything done! When you rely solely on your QuickBooks system and manual accounts receivable management, there are many challenges; it’s a productivity killer, riddled with errors, data is never real-time, contact and account information is buried deep in independent email accounts, invoicing takes too long, and its costly to pay for the manpower you need to manage it all.

If you utilize an accounts receivable management system to help you automate some of those tasks above, your collectors will finally be able to spend most of their day actually talking to customers and dealing with issues; not digging through emails, updating spreadsheets, or prepping for a phone call.

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Digital Advertising Agencies Must Shorten Receivables Cycles

In a high growth industry like digital advertising, access to capital is essential to successful growth and profitability. A 2013 industry report analyzed the payment practices and average length of payment terms in the digital advertising industry; the results illustrate that delayed payment is something digital ad agencies must focus on in 2014 to improve cash flow, accelerate growth, and make the investments they need to remain competitive in an quickly growing industry. Continue reading

Completing the Quote to Cash Process With Improved Accounts Receivable Management

There are many steps that go into finalizing the sale of a product or service; there is pricing, then quote creation, negotiation, approvals, and contract and order management. Once all of the work is done to complete each of those steps, the sale is complete… at least as far as your sales team is concerned. But what about the rest of the process? What about the part where you actually get paid?

Once the order is made, an invoice must be sent and payment must be collected; otherwise it’s like the sale never actually happened.  It sounds simple enough, but the final two steps  of the quote to cash process, invoicing and collection, are where many fall short of the completing the cycle. Below are a few tips to help you work through the final steps to quickly complete the quote to cash process.

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e2b teknologies Announces Parts Assembly Explorer Windows 8.1 Application for Anytime Commerce

May 27, 2014, Chardon, OH

e2b teknologies, publishers of Anytime Commerce B2B ecommerce software, today announced a new Parts Assembly Explorer application developed exclusively for Microsoft Windows 8.1. The free Parts Assembly Explorer application will be launched this summer for dealers, distributors, and manufacturers of capital equipment and complex products to help their dealers and customers to locate parts within complex product assemblies so they can easily order products online. Continue reading

Credit Collection Letter Template

Conversations about money owed to your company by a customer should always be handled with care. If you are sending reminder letters and collection letters (or emails) to your customers, it is critical to make sure you are sending the right message. Your goal is to send a message that will result in payment without damaging your relationship with the customer. to do that, you must find the right balance between firm urgency and friendly information- and that can be tough. Below is a credit collection letter template and sample of a reminder letter to help you craft the critical communications that will preserve customer goodwill while also helping you get paid faster. Continue reading

4 Strategies Companies Should NOT use to Manage Accounts Receivable

Our company works with all kinds of organizations who operate across various industries, from small companies to multimillion dollar enterprises. In our experience working with so many different kinds of companies and learning how they manage accounts receivable, we have come to a realization: No matter which industry a company is in or what kind of accounting system the use, they all struggle with the same thing, effectively managing accounts receivable.

Companies of all shapes and sizes spend hundreds of thousands of dollars on capital equipment and implement expensive ERP and CRM software for their general business and sales operations, but they do not have the same systems in place to automate or manage accounts receivable workflow. Instead they use the following strategies to attempt to manage accounts receivable, potentially losing thousands of dollars a year on bad-debt write-offs, financing costs, and related costs of delayed or denied payment. Continue reading

Save Time & Increase Productivity with Automated Debt Collection Software

There are many benefits found by those who use debt collection software to automate accounts receivable, one of the biggest though is the time savings it provides. There are a vast number of daily clerical duties that go into accounts receivable management; and while they are critical to the job, they are time-consuming, redundant, and open to human errors that cause payment delays and disputes.

Some of these daily activities include reviewing aging reports, updating spreadsheets, prioritizing contacts and putting together daily to-do lists, researching accounts to prepare for calls,  taking notes, etc. all of the activities can be considered non-value added and are a drain on collector productivity and efficiency. With all of that to be done, there is little time left for what really matters- collecting invoices, dealing with disputes, and communicating with customers.

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Accounts Receivable Strategies: How To Reduce The Cost of Credit

Extending credit to customers is risky and it can be costly; but it is also a part of doing business in today’s world. Just because is it common though, does not mean you should take it at fave value, it is extremely important to fully understand the cost of extending credit and the consequences of doing so. From there, take the necessary steps to reduce the overall expense of extending credit and work to better manage the entire process, therefore reducing the risk and cost while developing long-term, positive relationships with customers. So, when you extend credit to customers, keep the following in mind. Continue reading

Prioritizing Accounts Receivable Management Activities

Among the most effective ways to improve your accounts receivable is by prioritizing your credit and collections activities. This way you can take care of your most critical activities first, such as your largest outstanding invoices, delinquent accounts, etc. before moving on to your less important activities. This strategy will help you collect more efficiently, get paid faster, and increase your cash flow. Unfortunately, without the right tools and processes in place, it can be an extremely time consuming and overwhelming task for smaller A/R departments, which is why many companies struggle to practice this strategy. But there is something you can do to solve this problem in your A/R department. Continue reading

The Six Stages of Credit Collections for More Effective Accounts Receivable Management

Accounts receivable management should be looked at like a strategy and a process, not just an accounting function or as the result of doing business. Like any other process or strategy, there are a number of steps that need to be taken for the best result. Be methodical in your accounts receivable management and go through the following 6 steps to ensure timely collection, healthy cash flow, and positive customer relationships. Continue reading

White Paper Discusses Strategies to Avoid Payment Disputes & Faster Invoice Collection

May 13, 2014, Chardon, OH- Today, e2b teknologies, publishers of Anytime Collect accounts receivable management software, announced a new white paper entitled “How to Eliminate Accounts Receivable Invoice Disputes & Get Paid Faster.” The white paper was written to explain the negative impact payment disputes have on cash flow and to illustrate how better managing accounts receivable can significantly reduce disputes to allow companies to fully utilize their accounts receivable asset. The white paper provides proven strategies and best practices to help companies reduce invoice disputes and bad-debt; improve cash forecasting and cash flow; and increase their overall operational efficiencies. Continue reading

Top 3 Ways to Improve Your Accounts Receivable Turnover Ratio

One of the best ways you can gauge the performance of your accounts receivable management strategies is by calculating your accounts receivable turnover (ART) ratio.  ART helps measure and describe the efficiency of a company in collecting their credit sales. The accounts receivable turnover ratio is a good indicator of whether or not your credit and collections processes and terms are benefiting for your company. Generally a high value is an indication that your accounts receivable management strategies are working, a low value may indicate inefficiencies in your collections.  Different industries have different average ratios, so be sure you are comparing yours against other companies in your industry to see how you measure up. There are a few things you can do to improve your ART including the following: Continue reading