Most companies find it difficult to timely collect bills. Did you know billing and collection are among the aspects that directly impact a company’s cash flow? You may probably be thinking that your company can’t be affected because of the huge sums of profits it makes from income and revenue, but that doesn’t matter. There’s a possibility of tight cash flows, more so, when the company starts experiencing high overhead costs. Unfortunately, there’s no guarantee that the debtors will respond in good time, yet, your company has payments to make including corporate tax services. This article discusses how to improve bill collection for the betterment of your business.
Ways To Improve Company Billing And Collection
Limit the use of manual financial accounting
Can you imagine providing handwritten invoices to your customers? What if some of them accidentally lose it or hide it claiming you didn’t give them? Well, it can be difficult to track such deals unlike when it’s documented in software. This is because technology does quite well in memorizing debtors and creditors. No tricks about it. It rarely makes errors unless they’re made by the person behind the billing process. For this reason, going digital is one of the surest ways of improving bill collection.
Electronically deliver invoices
There are many companies that still deliver invoices physically. They however, don’t understand how risky it is to their financial records. The best option to think of is utilizing new technology by sending electronic emails. This is easier for contact tracking with all the required details.
Reduce time spent on the billing process
Among the factors affecting billing and delivery of invoices is too much time on approval and sending. It’s important to quickly approve and send invoices. To reduce this time, the company should allow the implementation of a rule of delivering invoices with a maximum of two days. If the approval doesn’t comply with the stated time, then it should be reported to the manager.
Frequently contacting the customer
The following are instances of contacting your customers to remind you about their debts due date. One, call them on that day to inform you that you sent the invoice. Two, call again after around two days to confirm if they received it. Also, let them know about the discount offers provided on earlier repayment. In case they still haven’t reached out even on the due date, call the third time to inquire about the delay. The three calls will definitely tell how much loss you can make if it happens with several clients. However, contacting them may give options of what can be done for faster repayment. An important thing to note is being aggressive and careful in approaching the debtors in your calls.
More solutions for improving bill collection
There are various organizations offering accounting services in Singapore. They may be important to your company especially when your staff lacks knowledge about digital methods of handling financial matters. For instance, our accountant company provide all accounting solutions that may be a threat to the development of your business. We’ve got a professional team dealing with secretarial services, bookkeeping, and general accounting.
The Bottom Line
Bill collection is among the factors that determine the success of a company’s business. Company incorporation services should give appropriate regulations to ensure a smooth running of your business. There are various ways of improving bill collection such as electronically sending mails, reduced billing process time, frequently contacting customers, and so on. For more information concerning financial solutions, please contact us at anytime you convenient.