At some point, Accounts Receivable can start to pile up high and weigh down your business. You might have gotten behind and have let it slip on collecting payments. It may have started to cause some scarring to your cash flow.
While it is important to create an Accounts Receivable Process, you might be at a point where you need to catch up before you can start fresh. Here are 5 easy tips to collect on your receivables quicker.
Make sure you get into a rhythm with basic communication that has a paper trail. Use a plugin like Mail Track to see if emails have been opened. Do not stop sending emails until they have been paid so customers do not have an excuse for paying.
Ever gotten a text that you owe someone money? You physically cannot ignore it. As long as you have a mobile phone number for your customer, a text is a very upfront way to collecting money. Using Twilio you can set up your invoicing to request payment via text.
Okay, we get it- 21st century, technology, who needs mail? Some companies and organizations do. Unless you have set specific terms that you are paperless, mailing invoices may still be important to your customers. You can use a tool like Mailform to help you there!
Not the most fun conversation to have, but make sure your customers are well aware of your terms. Let them know that there could be a financing fee added on for late payment, or a threat to be sent to collections. Customers will push your limits, so make sure you set them early on and communicate often. If they are completely delinquent, perhaps reach out to them and offer a discount to at least collect part of it.
Make sure it is public information to your entire team how much money is owed, and regularly update it so they can see their progress. Set a goal for how much they should collect and a reward them when they collect it. Remember, they are collecting your money, so if they can collect it faster, they are helping your business.
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