It can also help you avoid costly financial mistakes in the future.Īgain, accounting software is the easiest way to ensure you reconcile these payments, since it gives your business an easy, automated way to track customer payments. An efficient reconciliation process ensures that your books stay up to date, and that you’re prepared if your business is ever audited. Reconcile the payment.įinally, once the customer has paid their invoice, reconcile the payment. Most companies also offer alternative payment options, like PayPal transactions. For instance, you could let them pay by credit card, debit card or ACH. Offer customers multiple payment options so it’s easy for them to pay. The longer it takes your business to collect on overdue payments, the less likely you are to receive the funds. Have a process in place for collecting payments, and for ensuring most customers pay on time. Most businesses offer payment terms between 30 and 60 days, depending on a customer’s relationship with the company. You can use the software to track business transactions, store customer and vendor information, and generate reports during tax season. The best accounting software can do a lot more than just manage overdue invoices. Your invoice is the primary way you’ll communicate with your customers, since it outlines the transaction’s details.Įvery invoice should include the following information: Your business invoicing system can make or break the accounts receivable process. You may also need to evaluate the terms your competitors offer. Once you’ve outlined these parameters, consider the customer’s payment history, cash flow and value as a customer. Whether or not your business offers early repayment discounts.Your payment terms (for example, Net 30 or Net 60 – the number of days before payment is due).
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