Strategies for Increasing your Turnover
Improve your billing efficiency.
An interesting statistic shows that companies adhering to manual processing only spend 20 percent of their time talking to customers about payments, whereas companies that use account receivable software spend 62 percent of their time talking to customers. By increasing the speed with which you send invoices, you can complete and collect payments more efficiently. Prepare your clients to receive invoices and make sure that they are informed of the terms of payments.
Create incentives for early payment.
Offer your clients promotions or deals that will encourage them to make payments in advance. This will help you ensure that all your payments are collected on time.
Process invoices on time.
61 percent of late payments occur due to late invoice processing on behalf of business administration. Creating a detailed bill and list of invoices will help you stay organized. More organization directly equates to better, faster, and more accurate invoice processing, ensuring better account receivable turnover.
Create initial deposits.
Requesting an initial deposit (that is, a certain percent of the total payment to be made prior to commencing work) will allow you to ensure that at least part of the payment is made before you have to collect the rest of the dues.
Positive customer relationships.
Maintain a good relationship with your customers. Having an open communication channel with your customers will increase both customer retention and help you get paid more frequently. You can also use software to send reminders to your customers regarding upcoming payments and due balances.
Automate account receivable collection.
It is frustrating to follow up with unpaid invoices and keep track of them manually. By integrating software and technology that can automate collection for you, you will be able to more efficiently manage accounts receivable collection. This enables you to maintain better cash flow and have all invoices available in one place.
Managing your accounts receivable turnover is extremely important for your business’s health. However, it is also very easy to fall victim to poor management of your account receivables. Using the tips we have provided you, you can ensure better cash flow and better management of your accounts receivable turnover. BlueTape is one of the platforms that allows you to better manage your invoice collection and ensure that, as a material supplier, you can get paid fast and, as a builder and/or contractor, you can pay invoices on your schedule.
If you enjoyed this article, you can join BlueTape here! Enter into a new way of managing construction payments!