An important part of the accounting process is to make sure you get paid by clients after you invoice them. In some cases, you need to send a reminder or add other steps to your Accounts Receivable process to ensure you are paid. In this episode, Bernard Roesch provides best practices on how to streamline Accounts Receivable reminders in QuickBooks.
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The Importance of Reminding Customers
Your business is driven by cashflow. Even if you are doing a good job sending invoices to clients, the day to day operations of your business are funded by actual cash coming in. Clients may have good intentions but still somehow overlook payment deadlines. This becomes a problem for the cash flow of your business if invoices remain unpaid. Sending out reminders is a key step in ensuring you get paid.
Also, it’s important to look like you are running your business effectively from your client’s perspective. Staying on top of payment due dates will establish that confidence.
Have A Clear Accounts Receivable Process
Below are best practices for managing the Accounts Receivable process.
- Ensure that your Accounts Receivable records are accurate day to day.
When you send an invoice to your client, make sure this invoice is logged in your system and when you receive your payment, update your system as well. Use the reporting process in your accounting system to keep track of open invoices along with how long those invoices have been open or overdue. - Automate Accounts Receivable reminders.
There are multiple features within QuickBooks that enable you to stay on top of Accounts Receivable. Use the batch process feature within QuickBooks to make a reminder process more efficient. You can also use a third party QuickBooks app to automate the Accounts Receivable reminder process. What’s most important is ongoing communication with clients who owe money.
Need Help Configuring QuickBooks?
Its important to have good processes setup for your business. If you need help configuring an Accounts Receivable process that is streamlined and effective, contact Bernard today. Bernard and his team of accounting experts can also help you purchase the right QuickBooks software for your company’s needs and help you get the most out of your software.
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