Are you having troubles managing your payables and receivables? We have been there done that! As you know, managing your payables and receivables is the most significant aspect of your business in all stages. You may get overwhelmed with the kind of cash you’d have to handle, and keep everything intact and going. Fret not, below are some really simple techniques you can adopt to disentangle yourself from all the payables & receivables hassles.
Managing your payables can be a tricky business. For one, pay all your bills; do not let your unpaid bills linger any longer. The more prompt you are in your payments, the more reliable you become to your suppliers and lenders. Plus, there’s nothing like an unpaid bill that’s a dire threat to the business.
You can take complete advantage of the credit time limit given to you. For example, if your bill is due in the next 20 days, you do not have to pay the bill ahead of your time; rather you can use the cash for something else and pay this bill when it is due.
One other imperative thing you must do is to choose your suppliers wisely. Watch out for the ones that can offer you flexible payment options or that the ones that give you good discounts to pay upfront.
Nobody would have any problem running a business if they get paid for their products/ services on time. But that’s the hitch. Not everyone is prompt in their payments. Yet, you can do several things to collect the receivables efficiently:
- Invoice your customers promptly. Do not procrastinate in sending your invoices, as it is quite obvious that your payment will be procrastinated too.
- Do not give credit limits to your customers unless they are trustworthy. Enable COD (cash on delivery) for the customers; this will wipe out the painstaking process of following up for payments.
- Offer lucrative discounts for the customers who are regular with payments. This will also give them a chance to make the payment then and there.
- You must entail your customers to pay a deposit amount to use a product/ service if the invoice amount is huge.
Managing your payables and receivables can be easier if you outsource this to somebody who is experienced at the same time cost effective; on outsourcing to reliable hands, you can make use of the opportunity to concentrate on better things like working towards expanding your organization. Contact Joyce at +1-516-717-2049 to seek more information on Account Payables and Receivables.