at Meru Accounting
Are your customers not paying
in a timely fashion?
Is that affecting your cash flow and it costs you bad debts? The solution of these is to have systematic payment plans from the customer. Meru accounting provides Receivables management services along with the bookkeeping services in India. A record receivable management consolidates tied in with guaranteeing that clients pay their solicitations or invoices. Great receivables management specifically adds to an organization's benefit since it lessens terrible debts.
The organization likewise has a superior income and higher accessible liquidity for use in speculations or acquisitions. Besides, great receivables management boosts an organization's professional image.
Our receivables management is a comprehensive process consisting of
Reducing the total balance outstanding (DSO)
Preventing any bad debt in receivables outstanding
Determining the customer's credit rating in advance
Frequently scanning and monitoring customers for credit risks
Maintaining customer relations
Detecting late payments in due time
Meru Accounting's plan for accounts receivable management
- Clear policies for credit approval
- Set clear policies for credit approval which could include bank reference, trade reference, financial statement, and so forth.
- Send invoices for customers timely
- It might appear to be extremely self-evident, yet in the event that money is to be gathered; at that point, the client must be invoiced. It is basic that the receipt is conveyed rapidly and precisely. The receipt of your invoice sent is the main sign an organization gets the productivity of your debt collection system.
- Accounting for receivables
- Two key methods of speeding up cash collection from accounts receivable are by using factoring and using early settlement discounts which helps in easily tracking the payment from customers.
- Tracking of overdue payments
- You can easily track the payments from the customers that are overdue. We would do a regular follow up for receivables through email or a phone call.
- Making aged Payables report
- this shows the amounts outstanding from each customer and for how long they have been outstanding. This will indicate any breaches of the credit terms.
- Stay organized by Automation with Online billing tools
- Automating receivables management allows you to link all the systems. This improves workflow efficiency and provides better insight into generating cash flow and customer reports.
With receivables management services of Meru accounting, you can be assured of your cash flows at timely intervals. We would do a regular follow up for receivables through email or a phone call. We can use a specific email ID created for your domain ( email@example.com) from which we can do email marketing for your organization.
Purpose of Receivables Management
For a business, receivables management stands to be the core part as it helps in maintaining the soundness of cash flow. Receivables management does not only mean getting paid on time from the clients or customers, but it also aids in building great relations with them and empower the goodwill of a company. Here are some purposes for which generally a business undertakes receivables management.
- It’s a requirement
- Receivables management ensures the financial viability of a business and ensures the cash flow comes in on regular basis. Thus, it’s a core requirement of any business.
- Getting paid on time
- Every business has the daily requirements of finance like, to run daily chores properly, to pay bills, to pay employees, etc. The question is if the business itself won’t get paid from its clients than how would it pay the requirements? So, here the receivables management comes into picture to secure the financial needs.
- Reduces working capital needs
- Generally a business has to make a provision to fulfill the day to day working capital needs. This provision can be reduced if there is timely payment received from the clients and to ensure this, receivables management is a must.
- Happy customers
- Receivables management sets a proper system for billing and getting the payment timely which is inevitable and it also ensures that this process go hassle free. Thus it makes sure that customers go through a very smooth process of payment resulting into happy customers, and that of course eventually means more business!
- Managing relations with customers
- Normally, issues with customers come at the time of billing or invoicing, especially it is caused by some misunderstanding. If a business has a receivable management team separately, such possibilities get eliminated and good relations with customers can be established and managed easily.
- Setting a brand that focuses on process
- Receivables management helps in setting a systematic process for receiving payments from customers which ensures smoothness in the process. It turns a business into a brand which speaks with its integrity and values.
- Lending to customers having better credit ratings
- Receivables management deals with analyzing clients and their credit soundness. Thus it helps a business while coming into a contact. It also help in setting the lending agreement, as many a time a business lends some products or goods on a credit basis. Receivables management can save business from entering into such doubtful contacts.
- Reducing outstanding balance
- A separate receivables management team looks after receiving timely payments from clients and reducing the risk exposure of the business from a defaulting. As a result the inflow of payment remains regular which eventually reduces the outstanding balance occurred due to payments due to be received.
- Reducing bad debts
- As receivables management takes care of receiving payments from clients on regular and pre-decided basis, it reduces the risk of bad debts and saves financial soundness of a business.
So, that’s how if a business opts for receivables management, it can have many benefits and can focus on its core business without any worry of receiving pending cheques from clients.