All business owners eventually discover that dealing with late payments goes with the territory of running your own business. While in a perfect world all customers would pay on time, every time, the reality is: situations happen beyond our control. Employee absences, lost checks, and miscommunication can all contribute to late payments, delinquent accounts, and the subsequent lag in cash flow.
When you’re thinking about boosting your business’ bottom line, here’s the real bottom line: without adequate cash flow, business will fail. Cash flow is more than just keeping enough cash in the coffers, it’s about how much foresight and control you practice over your company’s finances over the long-term, even when business is hard to predict.
It’s common knowledge that the longer a business waits to get paid, the less likely they are to get the payment in full, with each day late translating into less money recovered. While successfully managing accounts receivable is about more than getting paid on time — it’s the art of handling customer credit, optimizing cash flow, and minimizing loss in order to maintain and grow a healthy business — it also means successfully handling late payments.
A change in political winds. Fluctuating prices of commodities. Unpredictable markets. Many outside events have an impact on business, yet most are out of our control. This is why focusing on what your business can control -- cash flow -- is more important than ever.
Decatur, Ala. – Thursday, May 13, 2021 Interstate Billing Service is excited to announce a strategic partnership with the Independent Truck Repair Group, iTRG, which will bring specially brokered rates and rebates to iTRG members.
Decatur, Ala. – Monday, April 26, 2021 – Interstate Billing Service is pleased to announce Alexander “Xander” Williams has joined the sales team as Vice President of Industrial Sales.
Take action in-house or outsource A/R to the experts.
It’s an all-too-common scenario. Business is on the brink of growth — but barely. What business really needs is more money to scale: money for fresh talent, money for cutting-edge tools, money for better facilities (to attract talent and house cutting-edge tools), and more. It’s a Catch 22, and the kicker? The list of business needs never ends.
Delegating A/R is good for cash flow and good for customer relationships
To outsource accounts receivable or not to outsource? While many companies have the right intentions wanting to keep A/R in-house, there are several reasons why outsourcing is often the smartest route. Too often companies make the mistake of mismanaging credit and collections, which can lead to poor cash flow and poor customer relationships.
Important metrics and KPIs that gauge the health of A/R management.
It’s important to monitor accounts receivable with standardized key performance indicators, or KPIs. KPIs provide guideposts by which to measure the health of accounts receivable and company cash flow. Accounts receivable KPIs also gather pertinent ongoing data that can be used to further inform credit and collections policies and decisions.
Decatur, Ala. – Tuesday, December 8, 2020 – Interstate Billing Service is excited to announce a strategic partnership with Procede Software which will bring mutual customers a step closer to seamless service integration.