Cash flow best practices
When it comes to cash flow, the faster you collect payments, the better. Money owed to your company is money not available. So it’s a good idea to assess and refine your accounting procedures to be as efficient and consistent as possible.
As you strive to manage receivables more efficiently and consistently, taking the right approach can help you maintain and even nurture your customer relationships.
Invoice frequently and accurately.
Here are some ways you can speed payment:
Invoice immediately. Don’t wait until the end of the month or some arbitrary date. Send the bill as soon as the job, service or delivery is done.
Send recurring invoices more frequently. If you’re billing in hourly allotments, do it twice or three times a month instead of just once so that money is always coming in.
Receivables management solutions
In addition to cash or check payments, today there are plenty of technologies, tools and resources to manage receivables more effectively. Consider contacting a small business specialist to discuss what would work best for your business.
Business pro tip:
Paperless billing is a faster,
more cost-effective way
to process checks
Bank of America, N.A. provides informational materials for your discussion or review purposes only. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.
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