Five Ways to Manage your Accounts Receivable Better during the …
Nupura Ughade
Content Writer
A Lannister always pays his debts. But not everyone is a Lannister.
Managing receivables can be a challenge even when it’s business as usual. Add a global pandemic in the mix and we have a perfect storm for businesses, leaving them grappling with countless challenges about their receivables. This could ultimately put a screeching halt to their growth or in extreme cases, to the viability itself.
My customers are affected by the global slowdown and can’t pay on time. How do I maintain positive cash flow?
How do I ensure the Accounts Receivable (AR) process is ready to survive this pandemic and thrive after it?
These are some of the questions that businesses face. The answer lies both in the “here and now” and in the “future-forward” thinking and actions. What businesses must realize is that a reactive approach can help them survive, and hence react they must. But parallelly, they also need to have a proactive action plan to ensure that they thrive.
Accounts Receivable management is all about ensuring customers pay their invoices on time, with least amount of effort from your end – thereby improving your cash flow while keeping the cost of collections low. And of course without sacrificing your customer’s experience. When these collections start to pile up, they tend to add to the risk of defaults and soon you might end with a liquidity crisis that could eventually impact your growth and profitability.
But how do you measure the effectiveness of your collection methods?
