From reviewing your A/R aging each week to knowing how and when to follow up, these collection strategies will help you get paid.
Considering the importance of cash, it's surprising collections is one of the more neglected processes for businesses. It easily gets out of control if not managed consistently. Especially in the current environment, you need to have a systematic approach in place.
Here's how to manage your accounts receivable to ensure timely payments.
Know Your Cash Status
Like brushing your teeth, getting paid requires consistent effort to avoid unpleasant surprises. While tools are available to automate certain aspects, you still must devote time to compiling and reviewing transactions as well as confirming your records are up to date and accurate.
It all starts with billing. Your invoices should contain all required information to be paid (accurate descriptions, P.O. numbers, bank instructions, etc.) and be sent as soon as possible. Having any missing information and/or not following a client's procedure just delays payment.