Developing a collection strategy is one way to ensure that your accounts receivable stays under control and you continue to collect your cash. Without one, there is disorganization, disconnections, miscommunications and just simply chaos in the accounts receivable department.A collection strategy sets a standard for how accounts receivable collections will be conducted. When will you be sending out first invoices? How often will you get in contact with your customers? Are you making follow up phone calls? If there is no order, then customers will fall through the cracks. If you aren’t ensuring that a follow up phone call is made after a collection letter goes unanswered, than your average days late will only increase.
You may understand the importance of having a collection strategy, but starting from scratch to make one is a different story. So where do you even start to make a collection strategy?
The best place to start is by identifying your current processes, if any. Figure out what kind of habits your collectors have. Maybe one likes to send invoices out on the first week of the month, while another may send invoices immediately after the product or service is delivered. Talk to each representative and find out which has seen the most success. Once you discover what collection strategies are working best, you’ll want to make that uniform across the accounts receivable department.
Anytime Collect is a leading CLOUD-BASED accounts receivable software. Made specifically for businesses selling on credit terms, Anytime Collect AUTOMATES invoice dispute management, cash forecasting, customer communications, invoice presentment, online bill pay and credit management. The entire collections process becomes QUICKER AND EASIER.
MSPARK is a privately held national provider of direct mail, analytics, and digital marketing services. With over 4,000 customers, access to more than 22 million U.S households and with 98% household penetration in non-metro geographies, MSPARK is highly competitive and rapidly growing. MSPARK sends out thousands of invoices each month and must collect millions of […]
Everyone loves a good urban legend or story but when it comes to collecting the money owed to your company, don’t fall victim to these popular accounts receivable management myths. MYTH #1: MY ERP OR ACCOUNTING SYSTEM HAS EVERYTHING I NEED FOR ACCOUNTS RECEIVABLE MANAGEMENT While your ERP or accounting system might have an accounts […]