Often Australian businesses get themselves in critical position by letting their money struck in unpaid Accounts Receivables (AR). Because of that, they end up in a financial crunching situation. However, freeing those amounts from such unpaid Accounts Receivable (AR) will help to run the business operation smoothly.
Wells, before stepping into the 7 easy steps to quicken the collection of AR, let us brush with some basics.
What is Accounts Receivables (AR)?
Accounts Receivables (AR) is the Current Assets of a company/business. Since it is the money paid by the consumers or clients for utilization of the goods or services of the company/business. Generally, these proceedings are in forms of invoice raised by the company/business for clients to pay.
7 easy steps to quicken the collection of Accounts Receivables (AR)
1. Speeding Your Invoice
Be aware of sending invoices to clients on time. Because, if any delay in sending invoice than payment too will get delay.
2. Billing at Right
Make sure your invoices billed rightly so that there will not need any further corrections. Since corrections will delay proceedings.
3. Be Smart on Fixing Credits
Think twice before raising credit limits to an individual by considering your sales. Because it will create a negative impact on your economic circumstance if they make any delay.
4. Have Feasible Payment Options
Be versatile on payment options. Having feasible payment options will prompt clients to pay quickly and it will increase your cash flow.
5. Maintain Aging Reports
Maintaining aging reports helps you track clients according to their pay category. By doing so, you can easily get information about pay history of particular clients.
6. Feel Free to Communicate and Record Interactions
Never hesitate to communicate in all available modes, if you are not receiving a proper response from your clients. However, make sure you are communicating politely and non-threatening mode.
7. Hire a Collection Agency
Finally, if you found no resources to quicken collection of your accounts receivables then consider about hiring a collection agency.