have you been noticing a lack of incoming cash and can’t quite put your finger on the reason why - it’s high time to take a closer look at your A/R.
Many businesses have trouble collecting payment either on time, or even at all, and that can cause a huge disturbance in your cash flow. Getting in the routine of managing your receivables is the most efficient way to improve cash flow and keep your bank account happy!
How can you prevent those unpaid invoices from a trip to the revenue graveyard? I have a list of procedures that every business should have in place. I call it the CYA plan - Cover Yer Arse!
1. Proper Documentation
Make sure to have the proper credit policies and procedures in place. Keeping a detailed paper trail can prevent headaches in the future.
2. Monitoring Accounts Receivable
Keep a close eye on your DSO (daily sales outstanding) and ensure your a/r is being maintained on a regular basis.
3. Follow-Up-Squeaky wheel gets the grease
Don’t be afraid to be “That Guy” Call, email, send reminders. It’s your money, you earned it.
4. Set clear payment terms
Leave nothing to the imagination. Set out your expectations in black and white. Don’t leave any wiggle room, that inch can turn to a mile in a blink of an eye!
Could your business use some assistance in these areas?
I specialize in managing and maintaining A/R, debt recovery, and creating credit policies and procedures. I deal with any business big or small, anywhere in Canada. Call or email me today to learn how I can help you.
306 520 4009.