Accounts payable & receivable process are key factors for a business organization. Proper management of these factors is essential for ensuring the efficient cash flow management of the firm. A good cash flow system is vital for conducting the day to day operations and optimizing the revenue.
Below mentioned are some tips which can help in achieving this goal:
Make the process easier: Making payments with checks and delaying the payments of vendors who have higher tolerance power are the things which complicate the accounts payable process. Such practices should be avoided to simplify the process.
Utilize the latest technology: Making the payments too early or too late, making the same payment again or missing a payment can hinder the accounts payable process. Using the latest technology can help in keeping a proper record of the accounts payable by maintaining data related to paid or to be paid invoices.
Build trustworthy relationship with vendors: At times, the circumstances are such that it is not possible to make the payments at the right time. In such a scenario, instead of avoiding the vendors, you must clarify the situation to them. This will help in building a fruitful relationship and make the accounts payable process better.
Use the electronic option: In order to speed up the invoicing process, you can use emails. It hardly takes a few minutes for a mail to reach its destination. Moreover the clients cannot deny the fact that they did not receive the invoice. This can help in faster payments of accounts receivable.
Offer best possible service: If the customers are satisfied with your service, then they are more likely to make payments on time. Maintaining a friendly relationship with clients will improve your accounts receivable process.
Accept different payment options: By offering different payment options to clients, you can increase your chances of receiving the payments quickly. Cash, checks, credit card etc., all options should be available to clients.
Consider hiring accounts receivable outsourcing- By using outsourcing services not only will the accounts receivable functions be performed in an effective manner but it will allow you to concentrate on more important tasks.
Credit policy should be uncompromising: Offering too much leverage to clients can lead to accumulation of accounts receivable, thus hampering your cash flow. So the credit policy should be firm.
Recommended Read: Boost Your Bottom Line By Outsourcing Accounts Payable
Cogneesol is well known for offering outsourced accounts receivable and accounts payable solutions to business ventures at affordable costs. To get more information, contact us at firstname.lastname@example.org or call us at +16466882821.