This simple collection of accounts receivable process is what I used in my small business.
Using this cycle got our customers to pay on time, every time.
In any company cash is the life-blood. Not much can happen without cash flowing into the business.
It’s about as important as it gets to get invoices paid on time. Therefore, it can be the difference between the success or failure of a business.
I know how it feels when you don’t get invoices paid on time. My business (and I) almost went broke before I devised this collection of accounts receivable process so we can get our invoices paid by the due date
It was so much easier when invoices were paid on time
- It reduced anger and frustration and so…
- I reduced my stress and so…
- I could focus on growing my business – not chasing overdue accounts
- And reduced the need for overdraft or loans
- Giving me a much better chance of making bigger profits
Here’s my collection of accounts receivable system
It’s proven to:
- Get invoices paid by the due date AND
- Improve relationship building with customers AND
- Encourage repeat business AND
- Get new business referred to you AND
- Never having to chase overdue invoices again
Getting paid on time was such a relief to me and it can be for you.
When to allocate time to the collection of accounts receivable
Split the time you allocate to your accounts receivable process over at least two days.
I’m using Tuesday and Thursday in my example of the weekly accounts receivable process. Preferably leave a day in between the days you choose.
Get invoices paid by the due date in 4 simple steps:
Just follow this collection of accounts receivable checklist every Tuesday and Thursday:
Get invoices paid on time – just by using your customer service skills
This collection of accounts receivable strategy worked for me for 15 years. It’ll work for you too.
I used this exact collections strategy in my small business. As a result, customers paid by the due date and we had lots of repeat businesses as well.
Because our invoices were paid on time I never had to apply for a loan. In fact, the business was always self-funded.
Being an outstanding service provider meant that our customers became ‘Raving Fans‘. They gave us repeat business and eventually referred us to other organizations. Hence, it was a very cost-effective way to grow the business.
You might like to adapt your system for collection of accounts receivable to suit your business – but don’t change it too much. This really works.
Worried you’ll upset your customers? Don’t be…
On the odd time that a customer would ask us if we were chasing payment early, we had a standard phrase. This put them at ease and kept them onside. In fact, we never lost a customer using this strategy.
And when you get paid, celebrate your success. Getting invoices paid on time and having strong cash-flow at the same time made running my business much less stressful. It could make yours less stressful too.
To your business success!