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Improving Cash Flow

By Fairway Collections

Interested in improving cash flow? Managing accounts receivable is a key skill to develop. There are simple steps any business owner or manager can take that can have a significant impact on how quickly your customers pay your business.

Let’s examine one aspect of accounts receivable management – billing your customers.

How effective are your billing statements? Statements are more effective in getting the desired result if they are clear and professional. Your statements should be easy to read, clearly describe the nature and the amount of the debt, include transaction dates and purchase order numbers required by your customers, and detail any credits or adjustments made. In short, your billing statement should provide all the information your customer will potentially need to make payment. Include your finance charge disclosure and the date payment is due. Be sure to provide your address and phone number in case there are questions.

Be consistent in processing statements. Delayed billings send a message that you don’t place a priority on getting paid.

Simplify the process of paying for your customers. Include a pre-addressed envelope, include a payment form the customer can use to give you credit card information, and let them know they can pay by phone. For recurring monthly charges, encourage customers to authorize an electronic auto-pay arrangement.
Don’t unintentionally place obstacles in your customer’s path, making it easy for them to delay payment. Remember that the “easiest to pay bills” will be paid first in any office. When your customers have fewer reasons to move your bill to the bottom of the stack, your business will benefit in an improved bottom line

For more information on managing accounts receivable to enhance cash flow and improve your bottom line, contactl the collection professionals: Fairway Collections in Centralia: toll-free at 800-404-5887 or online at www.fairwaycollects.com.

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