There is no way to make AR Management a walk in the park, it’s a tough job but there are ways you can make the process much faster and easier and there are steps you can take that will help avoid late payment from the beginning. This blog will discuss the problems often found with manual AR management as well as discuss steps that can be taken to encourage timely payment from the start. By setting yourself up to succeed you can get paid faster without having to work harder or hire additional staff.
Problems with Manual AR Management:
Traditionally, companies manage AR manually, that is to say they often times use spreadsheets, aging reports, and highlighters to keep an eye on things. Not only is that a slow and time consuming practice, it also invites errors, kills productivity, and does not allow any insight or control into the AR management process. With AR automation your company can automat some of the most redundant workflow activities to create consistency as well as free them up to work on more important tasks. AR management software gives collection professionals the ability to collect more effectively, improve customer service, and make more strategic choices in their daily collections activities.
5 ways you can avoid late payment to begin with:
- When possible address the communications to a specific person, not just a company. If you can figure out who is in charge of paying the bills try and send the information directly to them so nothing gets lost or delayed due to ending up in the wrong inbox
- Always print terms and conditions on invoices.
- Electronically deliver invoices and statements. That does not mean you can’t send them via ‘snail mail’ but electronic deliver allows you to get the invoices to them faster as well as record when the invoice was sent, received, and even when it was opened which cuts back on customers’ ability to give you an excuse to delay payment.
- Store all sales invoices, statements, proof of delivery, etc. in a safe electronic place connected to your accounting system. You can also save the hard copies if your company does that, but being able to access them quickly on the computer is important.
- Keep invoices and proof of delivery together. This way if someone says “oh, I never received the product” you can have the information right in front of you that says otherwise.