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Four Steps for Improving Your A/R Collections Efforts

 
  William K. Thorpe, Partner, CFO Edge, LLC  
   
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  Article Summary  
With the progressing economic recovery, some executives leading Los Angeles and Southern California businesses are seeing sales and revenue improvements, but it's important to keep an eye on accounts receivable collections.

Many businesses are looking to improve their own cash flow by stretching out payments to vendors, and you may be seeing your customers stretching net-30 to 40 or 45 days, or seeing them delay payment under other terms.

With delays like this sometimes turning into problematic past-due receivables or collection issues, forward-planning business leaders will want to put in place processes and systems that deliver early alerts on A/R collection slowdowns and accelerate payment receipts.

This article recommends implementation of four strategies to improve collection efforts. Areas addressed include term negotiation, term enforcement, payment plans, and bank cash management services.

Maintaining and projecting positive cash flow is dependent on efficient and productive accounts receivable collection efforts. Business leaders interested in analyzing and enhancing their current processes can benefit from talking with a CFO services professional with a proven track record of implementing successful collection strategies.

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