Every business owner knows that there can be, at times, clients who are late or refuse to make payments. In the busy-ness of keeping a company running, this money is often neglected or forgotten, hurting both cash flow and growth opportunities.
Fortunately, with TFO Solutions, this no longer has to be an issue. We use best practices and collection techniques and strategies to get the money you’ve worked so hard for. With our knowledge and experience, we are ready and eager to serve our friends and neighbors located in the Dallas/Fort Worth area and the surrounding cities.
What is Collections Management?
Accounts receivable and collections management are a part of the same branch of bookkeeping. The latter being a proactive approach for businesses to streamline their procedure for collections and credit. Not only does this allow for a financial risk reduction, it typically leads to an increase in cash flow. Having a formal process in place can also pinpoint where there are cash flow issues and, ultimately, keep a company in good financial standing.
Still not convinced this is worth it? Neglecting to go after the money that you are owed can not only slow the growth of your company, it can stop any growth. Over time, you may be the one that is unable to pay vendors, loans, or even employees due to insufficient cash caused by this lack of attention.
Prevention is worth a pound of cure when it comes to collections. One of the most profitable steps in this process is to prevent it in the first place. This can happen by:
- Calling clients several days before the bill is due. Using this call to ensure the invoice was received and that there is an understanding of when the bill is due.
- Sending another copy of the bill, maybe through another method like post mail or email. Most bills aren’t due until 30 days after the invoice is received. Sending a few copies of the invoice will make sure it was received with plenty of time to act on it.
- Following up with the client to see if they understand how to make a payment. Provide several options and try to get a commitment on when payment can be expected.
The Role of TFO Solutions
At TFO Solutions, our process not only consists of prevention but the following roles as well:
- Monitoring aging invoices.
- Reaching out to those customers who are slow at paying several times and through various venues.
- Following up on the first-day payment is late and reminding of late payment policies
- Processing and securing payment when it is received.
- Communicating with our customers, providing updates and collection reports, when requested.
Need Help with Collections Management? Call Now!
If your company has steady customers, but you are running into cash flow problems, it may be time to take a serious look at your approach to collections management. Let our team at TFO Solutions reduce your workload and use our expertise to track down the money you deserve. Call now to learn more about our business and the ways in which we can help your business!