March 19th, 2014 : It's Important To Get Paid On Time
In today’s tough economic times, it can sometimes be difficult to get paid on time, but for any type of business, it is important that companies collect what they are owed. Without getting paid on time, a company cannot continue to profit or reinvest into their business efficiently, which in turn causes the company to stall financially. Getting paid on time is important, and strengthening procedures can help any business to not only collect what they are owed, but to get paid for goods and services in a timely manner.
The first thing a business can do to ensure they get paid on time is to set their procedures in stone. Having strict credit procedures and guidelines which do not waver helps those that owe a company money to know exactly what is expected of them in terms of credit and returning any funds that may be owed. Also, this means stopping sales to those who have proven to not pay on time, or that may not be as creditworthy, in an effort to stick to the guidelines put into place. Make sure to thoroughly investigate any buyer to be sure of their level of creditworthiness before any sale is made or any product is shipped to them.
Also, these payment guidelines should be outlined clearly to all buyers so each person purchasing from the company knows exactly what is expected of them in terms of repayment. Outline funds owed and penalty policies for late payments clearly on all contracts or invoices, as this will keep the buyer in the know in terms of what is expected of them when it comes time to pay.
Once all policies have been efficiently outlined, and the buyers have been made aware, it is equally important that any company stick to these policies as closely as possible. This means if a policy states that the account will go into collections if no payment is received after 30, 60, or 90 days, a company must follow through on this promise. Sticking to these guidelines will help any business to not only get paid, but to get paid for their goods and services on time as they see appropriate.
Next, it is important to train and make the staff aware of the stated policies and guidelines, and teach them how to handle customers with late accounts. Staff members placed in charge of calling delinquent buyers should be taught how to professionally and appropriately notify these buyers of their late collection, or tell them that their account has been sent into collections. Writing down or keeping a log is also a great thing to teach these staff members, as this will allow them to record all vital information during these calls. Staff should be taught to log the date and payment method if the buyer says they will pay on a certain date, as well as the name of the person they are speaking to as well as their payment amount or exactly what they owe the company. This record keeping will allow a business to stay up to date on late buyers as well as just what they may be owed at any given time.
Getting paid on time may be difficult, but outlining specific and strict guidelines helps any type of business to improve their receivables accounts. These guidelines not only help buyers to know what is expected of them, but they also help to weed out potential buyers who may be known for late or missed payments, ensuring that all payment will be received in a timely manner.