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Accounts Receivable - It’s all about process

Thursday, July 11, 2019

Accounts Receivable - It’s all about process

The sooner you send an invoice, the faster you will get paid. So here’s our guide to keeping your business cash fit and sustainable.

1. Be clear on your payment terms from the start.

The invoicing process begins at the quoting stage. That’s when you should clearly specify your payment terms. Ask all customers to sign an Authorisation saying they have read and understood your payment terms. This means there are no excuses for paying late.

2.Send all invoices promptly

Structure your day or week so you are invoicing as quickly as possible after the work has been completed.

3.Monitor payments closely

Don’t just send an invoice and expect your customer to pay on time. You need to monitor each invoice to ensure it is paid promptly. Again, structure your day or week to monitor payments. In addition, put a process in place to remind customers when your invoice is due and promptly advise them when their payment is late.

4.Decide how you will manage non-payment

The longer a customer takes to pay your invoice, the less likely it will be paid so it’s important to ensure all invoices are paid promptly. When you are faced with a slow payer, you need to have a plan in place for the next steps and when you take them.

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If you and your business are ready for help with managing your accounts, talk to the friendly and supportive team at Numeric Eight. We offer highly tailored bookkeeping services with the security of a fixed monthly fee. For more information, call 02 9437 1785 or email us.

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