Set up an accounts receivable process with QuickBooks’ accounting solutions
A steady cash flow is essential to running a successful business. Without a constant influx of cash, you will be unable to afford the expenses that a business incurs on a daily basis. Many businesses provide goods and services on credit in order to encourage customers to choose their product over their competitions’ products. However, offering credit to customers means that business owners have to wait to receive the money owed to them. Moreover, it can sometimes be time-consuming and difficult to get your customers to pay their accounts on time.
It is advisable to set up an accounts receivable process so that you can quickly see which customers have paid you and which customers’ payments are overdue. Accounting solutions are useful tools in the accounts receivable process. QuickBooks offers accounting solutions that can help you to streamline your accounts receivable processes.
Implementing accounting solutions is one of the best ways to ensure that your company receives enough money to function from day to day and grow in the future. Consider the tips below when assessing your accounts receivable process.
3 accounts receivable tips
- Send out invoices as early as possibleIt is highly recommended that you send out invoices as soon as possible once you have provided goods or services to debtors. Collecting owed money is easiest within the first 30 days, thereafter it becomes increasingly difficult. If you send out an invoice immediately, your service will still be fresh in your customers’ minds and they will be more likely to pay quickly.Accounting solutions from QuickBooks can help you to calculate customers’ invoices. Send these to customers as soon as a service is completed to remind them that you are expecting payment shortly.
- Keep your accounts receivable cycle shortIt is wise to remember that while you are waiting for an account to be paid, you cannot use the money owed to you. If you allow your customers 60 days in which to pay their accounts, you will have to wait for 60 days to use the money to pay bills, buy new equipment or pay suppliers, for example.By reducing the number of days in an accounts receivable cycle, you give yourself access to money sooner than before. This is particularly helpful during tough economic times, when many businesses struggle due to a lack of funds.QuickBooks’ accounting solutions are an effective tool for managing accounts receivable cycles. Simply extend or reduce the length of time you are willing to wait for accounts to be paid. The software will then alert you when customers’ payments are due.
- Communicate with customersDon’t hesitate to contact your customers when their payment is due. It is very common for busy people to forget to pay their accounts. A simple phone call is often all it takes to remind customers to pay.
QuickBooks accounting solutions: Manage your accounts receivable
With the help of QuickBooks’ accounting solutions, you can keep a close eye on your outstanding accounts receivable and ensure that your customers pay on time. A steady and reliable source of income for your business will provide you with the financial means to run and grow your business.
Take a look at QuickBooks’ range of accounting solutions to choose the right software to streamline your accounts receivable.