Believe it or not, many fast-growing small businesses have trouble getting paid on time -not because they don’t have a strong, profitable client base, but because they do not have a formalized, systematic way for collecting payment.
It’s easy to understand how this can happen when there is so much operational and production-related activity that somehow you forget to invoice on time. This can make your small business susceptible to collections and in most severe cases, having to file suit.
This risk is drastically minimized with the use of a well-documented Accounts Receivable (also known as Billing) process – a process that ensures billing occurs on time every time.
Additional Benefits of documenting an Accounts Receivable Process include:
- Quickly weed out clients who historically don’t pay on time
- Avoid or minimize time in extending “credit” to clients
- Expose existing receivables inefficiencies allowing you to easily identify opportunities for improvement
Take a look at this presentation for additional tips on creating an Accounts Receivable process that ensures you get paid on time, every time.
You can also click here for a FREE Accounts Receivable process and procedure template. Customize according to your business needs. If you have questions contact us and we can help you figure out how to get a process in place that you can begin using immediately to improve cash flow and ensure you get paid on time, every time!
