How do I collect on my accounts receivable quicker?


Maybe you got behind and slipped on collecting payments. This causes some scarring to your cash flow and you might be at a point where you need to catch up before you can start fresh. 

Here are five simple steps to collect on your receivables quicker. 

1. Send out a weekly invoice via email until a bill has been paid

Utilize plugins to see if emails have been opened, and do not stop sending them until the bill is paid so customers don't have any excuse for not paying up. 

2. Text twice a month

You physically cannot ignore a text. As long as your customer's mobile number is on file, this is a quick way to get it done. It's upfront. Try out a cloud platform that can schedule out texts or calls. 

3. Use the mail (postal)

It's the 21st century. Who needs snail mail? Some companies and organizations do. Unless you have clear terms that you're paperless or give the option to customers, mailing invoices may still be important. You can use online tools to help you with this!

4. Discuss repercussions with customers

This isn't fun, but some customers need reminders on terms. Let them know there could be a financing fee or even a possibility of being sent to collections. Customers will push your limits, so make sure you set terms early on and communicate often. 

5. Incentivize your A/R Team

The amount of money owed by clients should be public knowledge. Regularly update it so your employees can keep an eye on their progress. Set goals for how much they should collect in a given period and reward them when they collect it. If they can collect it faster, they are helping your business. 

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