Having efficient collection of accounts receivable is crucial since the company’s liquidity can be affected. The collection of accounts receivable goes hand in hand with the cash flow generated by the general operation, in addition to being the company's main income base to establish short and long-term commitments. Collection of accounts receivable is based on the establishment of steps that will allow the efficient completion of the set of actions, tasks and possible negotiations that will be used with clients to achieve the recovery of the balance due that is expiring or has already expired. It is important to keep in mind that the optimization and compliance of these steps is a fundamental part of the success of a company; apart from providing financial stability to the organization, it impacts every one of the departments that form the company.

We will give you some tips to improve accounts receivable collection in your company:

1. Implement automated systems: A system that automates the issuance of invoices to be collected and the sending of reminders due dates is a great solution to prevent or deal with a delinquent portfolio, since your clients have all the information regarding their pending payments in a clear way. Also, including payment buttons will provide the customer with an easy and simple way to pay.
2. Develop a collections strategy: Take some time to review your collections strategy. One option is to segment your customers and develop collection strategies for each segment based on their size and payment behavior.
3. Ensure a quality customer experience: Automation is a quick way to annoy your customers. Avoid setting up multiple automatic payment reminders whether via email, phone, or text message. Use an accounts receivable management tool that systemizes your process to save you time internally but also allows you to give your clients a personalized experience. Personalized communications give you the opportunity to communicate directly with your customers and determine the reasons for late payments, helping you maintain a good relationship with your customer.
4. Align your team: Collaboration is key to optimizing the collection. Keep all members of your customer service team informed, including sales and finance, ensuring clear and up-to-date communication with your customers. Make sure you have a clear idea of the experience you want to provide to your customer at the time of collection to maintain an excellent image and service.
5. Prioritize your collections efforts: In your collections process, prioritize accounts based on customer balances, not individual invoices.
6. Offer discounts and payment terms: Creating early payment discounts as an incentive is an option to analyze. You can also offer frequent partial payments for clients with poor cash flow by establishing a systematic way to collect payments without interrupting the process.

At My Accounting Now, we are able to help you with your accounts receivable management. Call us at 786-228-8689 or send us an email at info@myaccountingnow.com and find out how you can improve and eradicate the problem of overdue accounts receivable.