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The Costs of Letting Your Customers Control Their Payments

Date: September 7, 2021

Improving Cash Flow through Better AR Management

Many small business owners don’t realize that making some small tweaks to their operations can make all the difference in their bank balance. We want all of our clients to consistently see the bank balance rising month after month, sometimes that means they need to change the way they think about their accounts receivable (put simply: the clients that owe them money).

One of our clients just made a shift in this area of her business, she went from over 6 figures in accounts receivable (money owed to her) to less than 8k in 30 days… Yes, you read that right, from 6 figures to less than 8k in 30 days. Now, she’s collecting late fees on the remaining 8k still outstanding, and all new clients coming in will never be late again. Now she can count on her monthly revenue figures are actually hitting the bank so she doesn’t have to run her credit up or figure out how she’s paying the bills while waiting on clients to pay for services rendered. 

Managing your Accounts Receivable is a lot easier than it may sound. Done manually, it’s tedious, time-consuming, inefficient, and frustrating. Nor is it the best use of your time as the business owner. We help clients set up automated payment processes where they collect the billing information upfront during the sales process, putting the owner in control of the payments instead of the client. No more waiting on Sally to pay her bill, the business owner should be the one processing that payment each month on the agreed-upon date. In doing so, you free up your time to create, send, track, and receive payments on outstanding invoices – it’s all set up on autopay so you don’t have to worry about it. You also save time and money in negotiating with the client to pay their bill, paying an admin to keep track of everything, and ultimately doing work for free when the customer disappears. 

Once you have an automated and streamlined system set up for your revenue collection (AR) you can make decisions around finances without having to make last-minute calculations and question whether or not you can afford to make a specific move in the business. Another big change businesses are making lately is offering credit options for customers, this will continue to become an important part of keeping up with the competition as other business owners start to take advantage of financing services.

If you feel like you’re always tracking down payments, keeping up with who owes how much, and you’re sick of wasting time and money on handling accounts receivable in your business – we can help. From finding the most cost-efficient options to implementing fully automated revenue collection processes, analyzing the AR Aging summary report, and hacking ways to make more, faster, and with less cost to the business – click here to set up a free strategy session where we will walk through your current challenges and map out a plan of action to correct course.

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