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

How You Manage Accounts Receivable Can Make or Break Customer Relationships

Asking for money can be uncomfortable, but it’s a part of doing business. No matter how much you may be afraid that asking for payment will negatively impact your relationship with a customer, it won’t happen as long as you do it correctly. Your customers will not get upset and leave your company because you asked for payment for products/services provided, they know they owe you. The topic itself won’t result in bad blood, but the way you handle the conversation might. Remember, accounts receivable management is just as much a customer service function as it is an accounting function. Continue reading