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Accounts Receivable: How To Effectively Reach Out To Customers

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In this post we will discuss how to effectively reach out to customers in a manner that focuses on the positive in order to encourage future business, while still maximizing payments for completed services and/or delivered products.

Focus on the Positive

Most customers do appreciate a positive interaction with a business and often your treatment of them is the deciding factor when they are considering additional purchases. 

Sometimes a client will simply forget to pay a bill and an initial friendly reminder is enough to generate a payment on their part. 

Maintaining a positive, professional approach to payment collection is often more effective than taking a hard liner approach, especially with initial requests for payment.

Reminders and Follow-Up

Many companies now send out reminders a day or two before a bill is due as well an official monthly statement or email. 

Sending out an email or text message reminding clients of a due date is an inexpensive way to encourage payment. 

After you receive a payment, it is also a good idea to send out an email, text message or in some cases, a mailed receipt so your clients know you received their payment. 

As always, clear and consistent communication helps when trying to maintain a positive relationship with (hopefully repeat) customers.

Collection Guidelines

Sooner or later, almost every company will deal with past due accounts. 

Once again, consistency is the key so that your clients are all treated in the same manner.  Train your staff so that they all follow the same processes when handling a delinquent account. 

If you assess late fees and interest, you will need to know your particular state's laws in order to properly implement them. 

You need to have a plan in place as to how to handle the debt. 

Do you want to try to collect it yourself or sell the debt to a collection agency? 

Having a plan and an organized approach to overdue accounts will minimize the time and money you spend on collection processes, which means you can maintain focus on the other aspects of running your organization.

Still have questions about accounts receivables? LUXA Enterprises helps small businesses by providing outsource accounting services. Contact us today for help with your accounting.

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Topics: Accounting