If your company is having trouble collecting its accounts receivable (AR) payments on time, it might be a good time to look into adding some new methods for collecting these bills. Using current technology can help you with this, and making a few changes could help you improve your AR turnover rate. Here are two options you could try using if you are not already, and both involve technology.
Send electronic bills
Before the Internet was around, companies would always send statements through the mail, and there are still many companies that use this system for this purpose. Sending statements in the mail is not a bad way to do this; however, sending electronic statements might be a better option.
If you email statements to your customers, you will save money. You will not have to print the statements or pay for envelopes and stamps. In addition, your customers will receive these statements immediately, which is a feature you will not find when using traditional mail services.
You can also send statements as often as needed, and this will be easy to do. For example, if several customers are late on paying their bills, you could easily send them new statements through email. This could be a good reminder for them to pay their bills.
You could even set up a mobile app, which would also allow you to send statements to your customers and communicate in other ways.
Offer electronic payment options
While many companies still mail checks to pay bills, collecting money electronically is a much easier way to do this. If your company is not yet set up to collect payments electronically, you may want to look into the following options:
When you offer easy options for paying bills, it might encourage your customers to pay faster. Another option you could look into is AR factoring. This is something that allows you to sell the AR accounts you have for cash. To learn more about this topic, contact a professional for help. The bookkeeping services by Nathan Professional Corp and other companies can help you find new ways to improve the efficiency of your accounts.Share
4 December 2015
When you own and operate your own business, it isn't always easy to keep track of finances. As you order inventory and pay employees, you might be sidetracked by day-to-day duties. However, overlooking the financial details can cost you later. I started my own business five years ago, and I went a few weeks writing bad checks before I realized that my main business checking account had run dry. Fortunately, after hiring an accounting team, my business has operated a lot better. I want to teach you about the financial aspects of business, which is why I made this web page.