Believe it or not, management impacts the attitude of even indirect employees. Accounts Receivable is an often thankless job, but it holds the throat of the cash flow into your business.
Some factors that may help your team widen that river of cash is showing support in some of the following ways: commit to improving the process, focus on accuracy in fulfillments and invoicing, and ensure good tools.
Making a commitment to yourself to improve the AR process is the first step toward a successful accounts receivable program. Saying you’ll help the team is one thing. Checking in on progress every couple weeks doesn’t count. It’s like how you always tell the waitress that the meal is fine or good when she stops by to ask how everything is. Work with the team to see what processes are taking up the most time and how they can be streamlined, then deliver. If that means getting better invoicing software then get the software. Your employee’s time is more valuable than the cost of most accounts receivable software on the market.
One of the most commonly reported factors in accounts receivable disputes are errors in fulfillment of orders as well as on invoices. When your accounts receivable team has time to focus on the accuracy of the invoices, they can prevent more errors from causing kinks in your cash flow. You can work with your delivery team to make sure that there are no orders on their end. Clearing up these simple errors can remove up to a third of your accounts receivable disputes, meaning you get paid on time.
Abraham Lincoln said that if he were given 8 hours to cut down a tree he’d spend the first six sharpening his axe. The tools your provide your accounts receivable team can either help them or impede their efficiency. If they are stuck using accounting software that isn’t designed for the accounts receivable process, that cuts into valuable time your team could spend on getting invoices paid. If the invoicing software doesn’t play well with your CRM, that’s also a problem. Software with invoice automation and credit scoring take much of the tedium out of the invoice collection process. Give your team sharp axes (good software and good support).
Max Golovnia | Co-Founder & CTO
Armatic Technologies, Inc.