It’s important to know how to manage accounts receivable with invoice automation in order to be able to manage accounts receivable effectively. Extending credit terms reduces your working capital, which is why managing your accounts receivable effectively is crucial. Having overdue accounts means less cash for running the business, and managing past due accounts is costly.
Wondering how to manage accounts receivable effectively?
- Track key performance indicators like net accounts receivable and the cash conversion cycle to evaluate the effectiveness of your collection policy.
- Offer early payment discounts to encourage customers to pay before the due date.
- Ensure that your customer master data contains information like payment terms, credit limits, discounts, and accurate terms.
- Automate invoice and billing to make sure customers receive correct billings on time.
Invest in accounts receivable automation to improve visibility and make it easier to manage unpaid accounts.