Collecting revenue is an important aspect of most any business and can be even more challenging than selling solutions or services to begin with. Often times, the pains that come from collecting payments from customers stem from inefficient accounts receivable processes. Here are 8 ways that you can improve your accounts receivable to optimize your collections process and keep your business running smoothly.
1.Automate your invoices
Sending invoices individually through mail, or even email, can be time-consuming. Using a system that sends out all your invoices at once will greatly reduce the labor associated with your collections. Sending invoices electronically can also reduce your company’s payment terms by eliminating the delayed delivery of invoices through snail mail. This means that the customer can receive the invoice at essentially the same time that it is created, speeding up the collections process.
2.Automate your payment reminders
You can also automate the payment reminders that are sent out to your customers. This will ensure that the reminders are sent out on a regular basis and prevent invoices from slipping under your accounting team’s radar.
3. Save payment methods on file
Giving your customers the option to save their payment methods on file will prevent them from having to provide it every time they want to make payment. This will make the bill paying process quicker for them and will allow you to process payments on their behalf should they give you the okay to do so.
4.Provide an online bill pay portal
Offering customers an online portal for them to view their outstanding balances and make payments at their own convenience will give your customers more control over their account and reduce the number of incoming calls and emails that your accounting team has to support.
5.Sign up customers for AutoPay
Encourage your customers to sign up for automatic payments. Customers who agree to automatic payment processing will have their credit card or ACH charged on a recurring basis to pay for their outstanding balances. This will reduce the number of checks you get in the mail and the number of phone calls that your collections team will have to make and/or receive.
6.Offer early payment discounts
Offering customers a small discount for paying early can shorten the time it takes them to pay an invoice and boost your cash flow earlier in the month.
7. Use certified payment applications
Merchants accepting credit cards as a form of payment must abide by the PCI standards and regulations. Part of maintaining this compliance is using a certified payment application. Ensuring that the payment information that you process is safely stored will give your customers confidence in your company and greatly reduce the chances of your business being compromised.
8. Integrate your payment processing with your ERP
A seamless collections process depends on whether or not your payments are integrated back to your accounting system. If you are processing payments outside of Dynamics GP and then manually entering them, you are running the risk of data entry errors. Consider a solution that processes your payments inside of your ERP or integrates them back into the system automatically after processing.
Want to learn more about improving your Accounts Receivables? Join our partner Nodus Technologies for A/R Autiomation 101, a 60 minute webinar on August 17th at 11am Central time.