What are some tips to improve accounts receivable collection?
Accounts receivable collection can be a challenging aspect of running a business, but it's also critical for maintaining a healthy cash flow. Here are some tips to improve your accounts receivable collection process: Establish clear payment terms: Make sure your customers know when payment is due and what the consequences are for late payment. This information should be clearly outlined in your invoices and contracts. Invoice promptly and accurately: Send your invoices as soon as possible after the work is completed or the product is delivered. Make sure the invoice is accurate and includes all necessary information, such as the payment due date and any discounts or late fees. Follow up on overdue accounts: Don't wait for your customers to contact you about late payments. Be proactive and follow up as soon as payment is overdue. Consider sending a friendly reminder email or making a phone call to encourage prompt payment. Offer flexible payment options: Make it easy for your cu...