What accounts receivable and how to work with it

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Organization or SP with a cashless payment system often wonder, "What is: accounts receivable on a monthly basis are increasing, growing like a snowball?" Some would say it's good - products (services) is in demand, and the calculation can befor a while and wait.But we should not deceive ourselves - is basically the increase is a sign that the company in the near future will suffer losses.Have you ever thought that some permanent debtors use you as a bank?Those funds which are not paid to you in time - it is free money for your customers.They direct their other needs, they say, with payments you can wait (no one there does not need).And what do the lenders in this case?Naturally, late payment penalties or accrue interest.So it's time to understand what accounts receivable and how to reduce it, taking strict control!

tips that help reduce receivables

In principle, all the "accounts receivable" is divided into the following types: normal (between shipping (services) and calculate the term of the contract);overdue (the amount is not received within the stipulated date of contract) and hopeless (when there is no possibility to return funds).And not to be in the second and third cases, you must adhere to the following tips.Constant work with accounts receivable

has several stages.

  1. Weekly track of debtors using the software.Fortunately, that has now developed a computer program generates a report in a matter of seconds.This allows you to systematically monitor the financial situation.
  2. The earlier bill, the sooner the money will go.In addition, it is desirable to remind the customer payment terms.For example, attach a letter to the invoice respectful about it, and you can add this information to the score sheet below, highlighting it in bold.The idea to pay on time, shall be securely fixed in the memory of the debtor.
  3. Discounts for early payment - a great way to encourage customers to pay as soon as possible.This means that you can get a discount of, say, 2% if payment made within 10 days, whereas in the contract specified period of 30 days from the invoice date (and then see. Tip number 2).
  4. constant work with debtors increases the chances of getting money.Letters must be accompanied by phone calls.Of course, initially reminders should not be viewed as harassment.Messages should always be polite, but firm, ask customers about when they can pay the debt.
  5. One of the effective ways - to provide for such punishment as fines, penalties, interest rates.For example, just look at your utility bills or mobile phone, to understand what is receivable in the sphere of housing and communication, and to see what sort of conditions exhibited charges and penalties.These companies operate very efficiently to collect non-payment.
  6. Submit debt collection agency, if, despite all efforts, the debtor does not pay you.It's not perfect, but the reservoir firms know what the receivables, how to fight it, and very resistant to "knockout" of money.

Why a debt audit?

If properly managed effectively operates continuous monitoring of debt.Most customers usually pay on time.In addition, it is desirable to check the status of accounts, conduct an audit of accounts receivable and accounts payable.According to the results identified the strengths and weaknesses of the firm, as well as offered appropriate measures to improve its financial condition.The main steps of the audit the following:

  1. study of constituent documents, accounting policies of the organization.
  2. analysis of primary documentation, coordination of financial documents with the contractual terms and pricing, existing at that time.
  3. Evaluation settlement documents, compared to the reporting forms.
  4. Determination of reliability of data in the balance sheet and its annexes.
  5. guidance.

In principle, the area of ​​work with accounts receivable and payable only requires a well-functioning system of organization and control.Sets its own rules, and then follow them.