Last week, we talked about the importance of keeping your bills up to date, the good financial manager should avoid interest and penalties! But to be able to pay your bills, you need to have cash on hand and so it is so important to keep your cash receipts up to date and reduce customer defaults. Like last week, this week I'll give 5 more tips for you to control your Bills to receive.
1. Follow a billing routine
For your financial floor to day you need to be organized and follow some routines. One of the routines that you must adopt is the issue of tickets, invoices and any other form of billing. I suggest you choose a day of the week or month to issue these documents and send them to clients.
2. Offer discount for prepayment
This is a great way to reward good customers and reduce delinquency. Also, if your business is suffering from a lack of cash this is a good option to raise cash and make more money available for investments. To decide how much you will offer a discount do simulations on your cash, checking up to what percentage you can reach without affecting the financial health of the company in the current month and in the future.
3. Increase vigilance for late payers
It is important to be aware of the volume of open installments and advise the customer that he is in default and what restrictions the company or he may suffer if he fails to pay, but be careful not to be intransigent.
4. Charging is necessary
Charging a client is a bit embarrassing for most business owners, especially small and medium-sized businesses, where the business owner is in direct contact with the customer. In consulting, for example, it is very common for the consultant to be the financial manager. How to do this without harming the relationship with the customer, I have two tips that can help:
1) Create a financial e-mail from your company and make the billing, payment confirmation, invoice and ticket notifications through this e-mail;
2) If you have to charge by phone, ask a member to charge your customers;
5. Do not remind the customer only when they are late
There are only a few companies that thank their customers for the payment of the invoice within the agreed time, but this week I received an email (for lack of attention I ended up deleting) that the store thanked the payment of the invoice before the due date. As customers we are required to pay our bills on time, but it is always good to be recognized for acting correctly. Imagine if your customer has to choose between paying your bill and that of another provider, which one do you think he will choose? In my case, I would choose the company that sent me the thanks
And have you done the correct control of accounts payable and accounts receivable from your company? Leave here your tip! Track your receivables with our worksheet right now!