Increasing Your Cash Flow: How To Do It

Part 2


Cash flow improvements from Accounts Receivables is often in direct proportion to the degree of efficiency of your Collection Systems.

Importantly, there's not a relation between systems costs and efficiency. You can get a good Collections System for an inexpensive prices with monthly subscriptions models that don't have hefty up front fees, nor pricey services implementations.

What should such a system contain...lets start with these and see what else we can add on to it:

1. Structured Collection Strategies per Customer types. You need to get away from using "tribal" information which leaves when a collector leaves. 
2. Automatic Emailing of invoices, statements and  customer correspondence.  You need a system which someone can do "everything" without leaving their desks.
3. Dispute Categorization.  At least a third of your receivables can be "locked up" in non finacial reasons due pricing, tax, freight issues...and other categories.  You need to code these and get the "owners" of these issues commit to resolving them.
4. Internal Reporting.  You want seamless integration of data between system data and spreadsheets such as MS Excel.  It should take seconds...not hours.

Thanks for visiting!

Bill, The Cash Man

Receivables Rainmaker.com