Finance and Accounting Videos

JIM LOGAN: Cash flow is the lifeblood of any business. So here are three quick tips to help you manage your accounts receivable and get as much money into your business as possible.

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Collect More Cash:

-Make Sure Your Invoices Have Clear Due Dates

The first tip is be sure that every invoice you send has a very clearly defined payment due date. If it doesn’t have a due date, it may not be paid.

(voiceover continues)

Collect More Cash:

-Make Sure Your Invoices Have Clear Due Dates

-Establish a Good Collection Process for Overdue Bills

The second tip is, you want to be sure that you have a clear accounts receivable and collections process. What that means is, you want to be sure that at 30, 60, 90, or 120+ days, you have steps built in on how to contact a customer and prompt them for payment.

(voiceover continues)

Collect More Cash:

-Make Sure Your Invoices Have Clear Due Dates

-Establish a Good Collection Process for Overdue Bills

-Track Your Aging and Write-Offs

The third tip is a general one, but an important one. You need to track everything. If you’re not tracking your aging, if you’re not tracking your write-off, if you don’t have policy in place, it’s impossible to tell how healthy your business really is.