Watch out for accounts receivables

Controlling your business finances can be one of your biggest challenges. Since you have so many different people to pay and you have so many customers that are slow to pay, what can you do in order to ensure your company will be able to succeed?

Learn how to control when you get paid. This will help to determine if your business will become a success or if it is going to fail. Always take the time to create a credit policy. This is the best way to get your customers to pay you on time and to let them know the repercussions if they do not make their payments on time. Take a look at when your bills are due for your vendors and creditors in order to see what type of credit you can willingly extend to your customers. If you only have 45 days to pay, keep your credit terms to 30 days. This way you have plenty of extra time to collect the money from your customers if they are slow to meet their payment obligations.

There are a lot of different ways to learn how to control your accounts receivables. A lot of companies like to offer discounts or rewards to their customers that pay on time or at least pay early. This is a good option to include in your credit policy because it can help to motivate your customers to focus on paying their bills in a timely manner.

Accounts receivables can be one of your greatest challenges especially in a world where so many people are struggling financially and they simply do not have the money to meet their payment obligations. One way to avoid losing everything is to ask for a deposit from your customers. Getting them to pay at least 50% of the total bill will be able to help you avoid losing everything as you already have a commitment from them that they will pay their bills.

Enroll your customers into automatic deduction programs. This is a great way to ensure payment as you will automatically take out the money from their account each month until it is paid off. Be sure to let your customers know what the penalty is if they end up missing payments due to bounced checks or other things. This will help them to know what their credit terms are and if they know they are going to be punished for missing payment, it can help to motivate them a little bit more to pay their bills.

To manage your accounts receivables better start keeping a smaller inventory. When you have too much money tied up in your inventory you are highly dependant on the customers to pay their bills. To avoid this from happening, you should make products to order or focus on keeping a smaller amount so that you aren't stuck with too much excess inventory on your hands. Not only does excess inventory cause you to have issues with your accounts payables and receivables, it also causes you to lose money as you need to rent warehouse space to hold all of these products that are not selling.

Never hesitate to issue invoices to your customers. Making your customers wait too long to receive invoices often means that they will completely forget about them and you may struggle to get them to pay their bills at all. Send out the invoices promptly. Always include one with the order and send another in about 10 days after they have received the product as a reminder that they do owe you money.Include the payment options that are available in the invoice, this can help them to pay promptly.