Receiving payments from customers is an important part of any business. But it can also be a hassle. Trying to keep track of who owes you money, chasing down payments, and dealing with late payments can all be time-consuming and frustrating. We'll walk you through the best ways to get paid quickly and easily.
- What are accounts receivable?
Accounts receivable (AR) is the money that your company is owed by customers who have purchased products or services on credit. The AR process begins when you issue an invoice to your customer, and it ends when the customer pays that invoice. In between, you'll need to follow up with your customer to make sure the invoice is paid. Having a streamlined and easy-to-use AR process will make the whole process less painful for you and your customers.
- Why are accounts receivable important?
Your accounts receivable process is important because it's how you get paid for the products and services you've provided. It's essentially the "front end" of your business - the part that collects money from customers. Having a smooth, efficient process for handling accounts receivable can help you keep your cash flow healthy and ensure that you're getting paid on time.
- What are some tips to make accounts receivable easy?
-Outsource your accounts receivable
- Save time and money spent on in-house account management
- Offer commercial customers a no-cost 30-day billing option
- Get reimbursed for A/R invoices within 24 hours (less a small discount fee)
- Gain control and consistency among multiple locations
- Avoid awkward credit and collection conversations and maintain customer relationships
- Spend more time managing and growing your business
- What are some common mistakes in accounts receivable?
One of the most common mistakes business owners make when it comes to accounts receivable is being lax with their invoicing process. This can lead to missed payments, long wait times for customers to actually pay their invoice, and even lost sales opportunities. Another mistake is not having a clear policy on late payments or delinquent payments. This can lead to misunderstandings with customers and even legal issues down the road. It's important to have a plan in place for how you'll handle late and delinquent payments so that everyone is on the same page. Finally, make sure you're keeping track of your accounts receivable Aging Report so you know exactly which invoices need to be paid attention to. Hiring a proven company to handle your accounts receivable can all but eliminate these mistakes.
- How can I get started with accounts receivable?
The best way to get started with accounts receivable is to partner with a company that offers invoice services. This way, you can outsource the entire process and focus on your business. They will help you set up your accounts receivable process, so you can get started right away. They'll also help you manage your invoices and payments, making the process easy and painless.
Interstate Billing Service has emerged as an industry leader in managing commercial accounts receivable by providing unmatched customer service at competitive prices. Founded in Decatur, Alabama in 1984 with only 5 employees, Interstate Billing Service has grown to employ more than 110 people. Together we serve over 500 clients with annual receivables exceeding $2.5 billion, while handling the billing and collecting of an average customer base of over 100,000. IBS is a wholly-owned subsidiary of Bank Independent, a $2.1 billion community bank headquartered in Sheffield, Ala. Founded in 1947, Bank Independent has grown to 29 locations with two operations centers. Because of this funding source, IBS is fully capable of funding invoices for any size business. We serve locally-owned stand-alone operations as well as diverse companies managing multiple locations.
Conclusion:
Accounts receivable is an important process for any business owner, and can be easy and painless with the right company taking care of all your needs.
