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3 Tips for Better Accounts Receivables Services
Feel like your organization’s accounts receivables services are antiquated? You’re not alone. Growth-minded companies across various industries are taking steps to improve AR department services and strategies – and the results are improved cash flow, increased customer satisfaction and more cost-effective practices.
Tips for Better Accounts Receivables Services
Slow and inefficient AR practices can have a negative impact on business, hurting things like DSO and financial supply chain performance. But the improved management of AR services and strategies can keep organizational performance high and ensure that customers settle invoices on time for steady cash flow.
Here are three tips for improved AR department services:
- Simplify Payments – Customers sometimes put off paying an invoice because it’s a time-consuming process – they either have to call and work with a department representative or mail in a check, which can slow down receiving and settling processes. Consider offering multiple payment options, like direct withdrawals and processing payments via major credit cards. Additionally, easy invoice presentment that allows customers to view bills at any time enables them to pay at their earliest convenience. By offering easier solutions, customers are more likely to settle bills faster, shortening the collection cycle.
- Offer Early Payment Incentives – Everyone likes incentives, and offering discounts to customers who settle bills within a certain timeframe (e.g., 10 days) encourages customers to pay invoices faster. The more organizations offer these discounts and the more clients participate, the more likely companies are to see a measurable increase in cash flow performance.
- Provide Easy Dispute Resolution – No AR department can avoid disputed invoices. And unfortunately, disputed invoices tend to slow down payment processes for weeks or longer. One of the most important accounts receivables services an organization can have is simplified dispute resolution. Define a list of guidelines and practices to guide department personnel in the event that a customer contests a bill. The hassle-free solution makes the process easier on both ends, and helps keep customers satisfied.
Achieving effective AR department services doesn’t need to be a hassle. Instead, implementing a platform that meets the above criteria– and more – is the best solution for improved AR services.
Better Account Receivables Services from PAYBOX®
To deliver AR improvement, PAYBOX® developed a cloud-based invoicing solution that supports enterprise AR departments by simplifying collections. A full suite of features helps optimize workflow and improve financial supply chain performance.
Ready to learn more? Contact us today.