When it comes to receivables, many companies make real attempts to “cover the waterfront”. They have policies and procedures to govern credit management and receivables supervision, and they have a designated in-house “collector” who rounds up the “lost sheep”. Good on them! Perhaps your business is among them. If so, good on you, too!
But is “good” always good enough? How effective are your company’s policies and procedures? And how prepared is the clerk, manager or controller who’s responsible for securing pastdue payments? Ask yourself this: “Can my business do better? Can I push my company’s A/R competence from good to great?”
If receivables outcomes aren’t meeting your company’s cashflow needs, if there’s too much conflict with pastdue customers, consider a top-to-bottom A/R review from Effective Receivables. Tweaking policy, improving procedure and upgrading in-house collector skills through pinpoint training tips may make all the difference – the difference between underperforming results and receivables management that gets the job done right. That’s a lot of downstream value for your business. Money well-spent.
A no-charge consultation opens the door. All you have to do is knock.
If your company doesn’t manage its receivables, your aging report will prove it. 30%-50% of invoice value will be pastdue over 60 days, and perhaps half of those dollars will be in the “over-90” column! These kinds of numbers are very hard on company cashflow. They induce jeopardy in payables and payroll, not to mention a lot of personal stress for owners and executives.
Fortunately, there’s a solution for this situation. It’s A/R management for companies without in-house receivables staff! Effective Receivables’ part-time, short-term outsourcing option brings your business more than 25 years of proven expertise in pastdue accounts. ER will develop a cost-effective A/R program based on best-practice policies and procedures; meanwhile, we’ll systematically reduce that frustrating inventory of pastdue billings and AWOL payments.
What’s the benefit? You’ll recover the cash that slow-payers and no-payers won’t volunteer. You’ll re-fuel your payables, energize advertising and R&D budgets, reduce the risk of bad debt, and the supplier-customer relationships on which your business depends will be more orderly, coherent and productive. And another important thing: you’ll have fewer sleepless nights!