Knowing how to manage your Accounts Receivable is essential to the success of your small business. From some ideas to streamline your processes to a great way to deal with slow-paying clients, here are four accounts receivable tips every small business owner should keep in mind.
Get Organized
Organization is the name of the game when it comes to managing your accounts receivable. Being diligent with your collection process allows you to identify payments past their due date, spot errors, and solve issues before they become problems. Some steps you may consider implementing include:
- Review your accounts receivable regularly (at least once a week)
- Automate Processes as much as possible
- Remind customers when a payment is approaching
Make It Easy for Your Clients to Pay You
Some businesses tend to privilege the payment methods and procedures that are more convenient for them. While it’s normal to want to simplify things on your end, try to think of your clients’ needs as well. Talk to them and figure out how to tweak your payment process to make it easier for them to pay their invoices on time. This may include offering more payment methods, and ensuring that invoices are sent out in a timely manner.
Resolve Late Payments
The truth is that late payments are part of running a small business. For example, according to a recent study focused on small to medium-size businesses, one in ten invoices are paid late. These are some guidelines to help you manage this common situation:
- Be clear on payment deadlines right from the beginning
- Take action as soon as a payment is late
- Invoice accurately and promptly
Factor Your Accounts Receivable
Dealing with slow-paying clients drains resources that can be put to better use to grow your small business. A good option to deal with this type of client is by factoring your accounts receivable. When you factor your invoices, you sell them to a company (often called “Factor”) that pays you upfront and takes charge of the collection process in exchange for a small fee. This way you don’t have to wait 30 to 90 days to get paid, getting the cash you need when you need it.
And the good news doesn’t stop there: When you work with a non-recourse Factoring company like ACS Factors, the factor assumes the risk of any non-payment, protecting your business from bad debt and further bolstering your cash flow!
ACS Factors: We Turn Your Invoices Into Immediate Cash
At ACS Factors, our mission is to help you get the capital you need to move your small business forward regardless of your industry or the size of your organization.
We are located in Upland, California, and have many clients in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
Reach out today by email (info@acsfactors.com) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!
