If you are a business looking to improve your cash flow, here are some accounting tips and tricks to help you stay more organized with your accounts receivable:
First, there needs to be clear understanding between businesses and customers when it comes to knowing when, how, and who to contact when paying invoices. Customers will also likely want to know if their invoice requires management approval.
Courtesy calls can be helpful to customers in this regard. Calling them a few days before the bill is due and asking if they are satisfied with the services provided can lead the conversation to asking them if they have any questions about the invoice due in a few days (hint hint: it’s time to make a payment). It’s advisable not to end the call without a commitment and to make note of it in the customer’s account.
Another good practice to have is to bill right after the job is done or the service is provided. This helps keep the time between billing and receiving payments short.
Finally, sorting accounts receivable aging reports by amount and not by name can be helpful to businesses because it lists accounts by the greatest amount owed and helps businesses focus on those accounts that need it most.
For questions or for a business analysis of your accounts receivable, please contact JF Bookkeeping.