Revenue is the lifeline of your business, so if this process isn’t organized and efficient, then you end up billing customers late or possibly missing it altogether. This affects all aspects of your business, right down to your employees, because if your customers aren’t paying on time, then you can’t pay them. Staying proactive is key when it comes to managing your account receivables. Use this checklist to avoid having to send your customers to collections.
1.Develop a Credit Policy
Having a written policy ensures consistency, continuity, and streamlines credit decisions. A well-defined credit policy protects your biggest asset – Accounts Receivable (A/R). It also helps with customer service and retention because there are no “surprises” when further action is taken.
2.Begin Collecting at the Time of Sale
Billing and collections are never a fun discussion to have with your customers, but don’t let that be a reason to avoid discussing payment terms upfront. Make sure you have it in writing and that your customer has a copy. Another option is to screen your customers to make sure they can pay.
3.Stay in Touch
Promptly sending your invoices is the best way to ensure immediate payment. Call or email your customers before the invoice is due. With field service software, you can set reminders to automatically send customized emails, SMS text, or voicemail messages based on a customer’s balance or the number of days a customer is past due.
4.Technology is Your Friend
You want to make it easy and convenient for your customers to pay. Field service software gives you the ability to invoice and accept online payments through a dedicated customer portal. Want to get paid even faster? Set up autopay for your customers, so they never miss a payment.
Having a well thought-out plan for delinquencies will help ensure that your past due accounts don’t affect your cash flow. If you’re still relying on antiquated methods like mailing paper invoices and individually calling your customers when they’re 30/60/90 days past due, then you’re running your field service business the hard way.
If you’ve exhausted all your efforts and need support, FieldRoutes’ partner A.R.M. Solutions can help. Contact Andrea Dahlgren at email@example.com or call 888-772-6468, ext. 503, for more information.