Want to get paid faster? Want to manage your receivables like an absolute pro? Thanks to the revolution that is the internet, there are more tools and resources available for free (and right at your fingertips) than ever that can help take your AR management to the next level. However, as informative as the internet is, it can also be overwhelming. However, have no fear, as you can simply reference our cheat sheet for the best resources out there for AR management.
The 8 Best Resources for AR Management
1) Predict Behavior - If you can “foresee” when a customer is headed for financial trouble, it will help you stay far away from doing business with them. Cortera shares how to use B2B purchase behavior data to help make these predictions. Visit the Cortera blog to start preparing today.
2) Invoice Like a Pro - Sometimes customers don’t pay an invoice for a pretty simple reason: they never received it. Help combat the most typical customer excuse by making it part of your process to send invoices online. The Small Business Bonfire has compiled the ultimate list of tools that allow you to send online invoices (and why you’re visiting them, make sure to check out there must-dos to get paid on time).
3) Set the Right Terms - It’s not always how you send the invoice, but what you say in it. Xero (the accounting software) has compiled a must-read invoicing guide, including a super informative infographic that reveals that invoices are, on average, paid 2 weeks late. So, for example, if you want to get paid in 30 days or less, set your payment terms for 13 days or less.
4) Get Into Technology - AR management and technology should go hand in hand. After all, it’s not just about getting paid, but about effectively managing your cash flow. American Express OPEN Forum has created the ultimate list of tech tools that can help you get paid faster, whether through time tracking, billing or accepting online payments.
5) Prepare For Excuses - Nothing is more dreaded in AR management that hearing a customer’s excuse for not paying on time. This infographic from Treasure Valley Factors helps you prepare yourself for each of the most common excuses. Check out this action plan for common late payer responses if you need more insight.
6) Get On the Phone - When a customer is just not paying, it’s time to get on the phone and give them a call. However, most people tend to me a bit hostile and angry in these calls, when in reality, this is not the most effective way to get paid. Credit and collections expert Michelle Dunn reveals the secret to having a truly successful collection call: treat it like a customer service call. Brilliant advice, Michelle! Access these collection call scripts if you need an example.
7) Know Your Options - When you have an unpaid invoice, sitting around and waiting for it to be paid is not your only option. Receivables factoring is a great option to get cash for those past due invoices immediately. Check out how the Receivables Exchange can help if you have a customer who is slow to pay.
8) Study Hard - AR Management is a never-ending process, one you should always be learning more about and trying to perfect. A great place to start this journey is with one comprehensive list of accounts receivable tricks. Begin here, with 101 Ways to Optimize Your Accounts Receivable Management.
What are some of your favorite AR Management resources?