Accounts Receivable Management
Effectively managing accounts receivable requires a thorough understanding of the Credit-to-Cash Cycle.
The first step in the process is to determine the risk/reward of extending credit terms to the potential client and granting the proper level of credit. Ask for and review credit references and possibly purchase a credit report on the customer to determine their payment history.
The next step is to manage the billing process effectively. It's important to send invoices that are accurate, professional in appearance, and mailed in a timely manner. You may also want to establish customer service centers to handle billing inquiries.
Unfortunately, managing delinquent accounts is often one of the most time-consuming aspects of the accounts receivable management process. The goal is to set priorities and strategies for collecting on these accounts while balancing results, costs, and the need to preserve the customer relationship - an important consideration as most companies understand that it's more profitable to keep a current customer than to acquire a new one.
The Profit Recovery System streamlines delinquency management. Our proactive approach not only improves our clients' cash flow by starting early in the collection phase, but it also reduces the number of delinquent accounts by incorporating third party involvement and a consistent approach to collecting on past due accounts. Read more...
In the unfortunate event that an account has been delinquent businesses typically will pass the account to a third party to recover the cash in a legal and responsible manner, while at the same time insulating the client from negative associations.The recovery process often utilizes professional collection agencies and attorneys to do everything from purchasing past-due portfolios to assisting on bankruptcy claims.For more information on how the Profit Recovery System can help to optimize your accounts receivable process, please call us at 1-888-446-4733 or click on the contact button below.
This information is only intended as advice. Please consult with a collection agency or an A/R collections consultant for additional information.