6 tips for improving accounts receivable management

Accounts receivable management is part of the financial success of any company. The success of your business depends not only on the many orders that come in and are completed. It also depends on timely payments from debtors. If payments are not forthcoming, liquidity is undermined and cash flow is negatively affected. Therefore, make use of the following six tips to improve your debtor management.

1. Send your invoices on time

It is very wise to send invoices quickly and not wait too long before sending them. The longer you wait to send your invoices, the later the payment will arrive. Therefore, it is advisable to prepare and send the invoice immediately after completing an order or service. 

2. Clearly communicate the payment terms with your customers

It is advisable to always clearly communicate the payment term. Not only in the general terms and conditions, but also in the agreement and, of course, on the invoice. If the term of payment and the latest payment date are clear, the debtor will also act accordingly more quickly.

3. Make payment easy for your customers

Making it easy to pay the invoice contributes to improving accounts receivable management. In that respect, it is advisable to offer multiple payment methods with the option of paying the invoice digitally. Payt makes the payment of invoices by debtors simple and offers many possibilities. This will increase your customers’ willingness to pay significantly.

4. Communicate well about outstanding invoices

When using Payt, it is immediately clear whether an invoice payment term has expired. It is possible to choose to send a reminder manually or to have the software do this automatically. Direct communication with the customer is possible, as well as making payment arrangements. In this way, payment takes place more quickly.

5. Send timely reminders and exhortations

It is important to remind the debtor in time of an unpaid invoice, and this also applies to any reminder. Keep your finger on the pulse to optimise your accounts receivable management in this respect. Having reminders sent automatically is, of course, ideal in this respect.

6. Be clear

It is important to keep the customer relationship at a good level. For example, it is not desirable for problems to arise in the customer relationship as a result of outstanding invoices. However, you should, of course, remind the debtor of the outstanding invoice for which the payment term has expired. There is a simple solution to this, because by being consistent in sending invoices, reminders and demands for payment, it provides clarity for the debtor. In this way, there will be no disruption in your business relationship.

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