Home Finance 4 Additions to Boost Your Accounts Receivable Collection

4 Additions to Boost Your Accounts Receivable Collection

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There is one thing in each business be it small or large scale and that is the cash rules the business like a king. This is why it becomes so important to have account receivable collection tools to get the collection of the money as promptly as possible. This is because the rate at which you receive the cash decides the further reinvesting of yours since this is the prime motto of growing your business. You can use any web browser to keep a note of all your pending invoices and then handle the receivables accordingly.

Fixing a system where an automated reminder is sent to the customer one to two days before the payment due date via email triggers can get your payment done quickly. These tools enable you to receive the cash flow reports in real-time and you can plan the future steps as well as the cash-flow by tracking all the dates which are designated for receiving the payments by customers as per their commitment.

Your staff member will handle the collection’s activity more efficiently now. You will be having all the updated data regarding the customers you have reached out to, note and track down their response and the tentative payment date all through the troveworks free collection management software and the best part is that the customers can reply to you regarding the payment reminders you have sent and it will automatically appear in account receivables.

The collections initiate with a daily sales outstanding accounting ratio and don’t worry these heavy accounting words or acronyms aren’t here to bring any kind of confusion. The daily dales outstanding tells us about the remaining days before one has to collect the due payment. It is advisable to collect the due as soon as possible because this will account for having more money and better growth.

However, it is easier said than done, and determining how to reduce the collection time is the key here. Luckily, we are here to tell you about the four additions you can make to your account receivables to enhance the progress of payment and collection. In these following steps, we have also talked about an important aspect which has proved itself to provide prompt actions and improved these tasks, even more, we are here talking about the ar integration for QuickBooks.

1. TIMELY SENT BILL

You have to send the bills to your customers in a time so that the overall collection process can get speed up instantly. But unfortunately, the billing process is usually put off. The reason which might seem genuine here is the presence of various stands such as graphic designers, manufacturers, salesman, and service provider. And the least emphasized one here is the bookkeeper. Since the delay in the billing often results in more delay for the payment and worst situation it is ignored. Having followed a manual process can cause challenges and here comes QuickBooks which removes these kinds of issues. It helps in the segregation and professional invoice output with a prompt email process.

2. MAKE PAYMENT PROCESS FLUENT

Don’t hold yourself waiting for the cheque to come. We talked about how cash rules the business as a king but for most of the customers, the most convenient way for paying is with their credit card. Don’t deny the payment by offering them another mode of payment when they are willing to do it with theirs. The account receivable management system allows you to accept all payments from any mode. You can provide them with a secure payment link in the mail that they can click upon and do the rest at their convenience. Your QuickBooks will get an automated update once the payment has been received as well as sending the confirmation to the customer for the same.

3. STAY ONE STEP AHEAD

The plan for most of the customers initially is to pay you on time but sometimes this gets lost into their ignorance. Now you have to decide how you want to handle the customer in such a situation without losing them. The account receivable will help you here in managing your daily collections from the QuickBooks and preparing the AR aging summary.

4. SAVE TIME ON AR PROCESS

You won’t meet any happy business owner who is unable to pay ample time in more productive works such as bringing in innovations or polishing their services. Bookkeeping is a secondary thing for the business owners and they try to make it automated quickly. The first step in this would be negating the manual entry process and this will save you from a hefty business day where you are ended up with doing piles of manual sales entry. Account receivable software integration helps in making the matches between all the deposits with the bank statement automatically while the important sales data gets securely imported into the QuickBooks.