“Tips for better management of your Receivables”
Here are some tips for better management of your receivables:
1.Prompt recording and invoicing:
Record sales as quickly as possible and ensure that the invoices are delivered to client as soon as the product is sold or when the service is completed.This helps in faster conversation from cash after sales transaction.
Customers should be made to adhere to the credit policies and should be followed up immediately after the invoices are sent.
3.Outsourcing of Receivables:
In case the present staff is not able to effectively manage your receivables it would be a good decision to outsource to third party vendors. This would have a dual advantage of lower cost as well as increase in efficiency.
4.Follow-up of Receivables:
Timely follow-up of the receivables would help in faster collection and reduce the amount of bad debts. You can hire an agency to have a timely
follow up of receivables.
Business should do regular ageing analysis and thereby getting an overview of where the receivables management stand.
Business should also analyze the present credit practices of competitors to know the recent trends in collection.
Automation of business process can prove to be cost advantageous. We can provide Automation with Software’s like intuit Quick-books freeing up your majority of time. Quick-Books can do automation for you.
8.Quality of Receivables:
Business should ensure that the receivables are of high quality and would not default. Various tools like bank guarantee, letter of credit etc. can be used for reducing the default risk of receivables.
9.Mode of payments:
Business should accept payments in as many ways as possible which makes it easier for the business to pay on time.
We at Rayvat Accounting would help you to manage your receivables effectively. You can drop a mail at email@example.com for a free analysis of your present process and how can we help you manage your receivables at competitive rates.