Common Accounts Receivable mistakes to Avoid.
Correcting the following common mistakes below will help your accounting team reduce accounts receivable:
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Invoices with errors or missing information.
Even a small mistake on an invoice can be costly. For example, if you forget to include a late payment policy on your invoice, you will not be able to receive a late payment penalty if the customer misses the payment deadline. To minimize errors, companies are turning to AI-enabled receivables platforms to verify all information before sending invoices to customers. -
Insufficient (incomplete) communication between team members.
If a member of your accounting department contacts a client about a late payment but does not inform the rest of the team, another member of the team may also contact that client. As a result, your company looks disorganized and your client may be dissatisfied with repetitive follow-up. -
Not tracking overdue invoices.
In accounts receivable management, figuring out how to keep track of invoices and get paid faster is the name of the game. However, many overburdened accounting teams simply lack the resources and systems to work effectively. -
Lack of sufficient payment methods.
Companies must make it easier for customers to pay their bills using their preferred methods, which are increasingly becoming digital. Once you figure out how to give your customers the digital invoicing experience they're looking for, you're taking an important step towards fast, reliable payments. -
Errors in reconciliation of payments with invoices for payment.
When companies process bulk invoices quickly, applying a customer payment to the wrong invoice can also be one of the mistakes. To solve this problem, businesses can implement an accounts receivable accounting platform with tools to correctly apply incoming payments to outstanding invoices.
Electronic invoicing can improve your efficiency of Accounts Receivable Management.
e-Cont.md offers cloud-based accounts receivable management solutions that help companies from different industries get paid faster. In fact, when companies automate their receivables processes, they shorten the service-to-pay cycle by 40 percent to 80 percent.
Interested in learning more about automating your receivables practice from start to finish? Read the Guide to Accounts Receivable Automation to learn how and why to automate each component.