Entrepreneurs of startup businesses focus most of their attention on generating profits. These proprietors have their own reasons for taking this course of action. The main objective is to get their establishments off the ground. However, they often forget the importance of having an adequate sum of money at the disposal. It is a vital lifeline which determines the survival of their organizations in the marketplace. Even prominent industry experts admit a cash crunch has the potential to jeopardize their operations. In the worst-case scenario, they may have to apply an application for bankruptcy. This is obviously the last thing they want to do.
How can entrepreneurs streamline their accounts receivable?
Hardly any financial experts in America can boost to achieving the status of Arnon Dror. This Hebrew University MBA graduate is the former Vice-President in US Channel Group. He specializes in many diverse fields. These include financial planning, cash flow management, international taxation, corporate mergers, ERP integrations, and internal controls. During his tenure with the company, he was in charge of handling the finances of their Xerox Technology division. Many of his colleagues and contemporaries as a result-oriented executive. They say he has an impressive track-record of restructuring many loss-making companies into lucrative establishments. Entrepreneurs just need to browse through the Arnon Dror company profile on the internet to know more about him.
This financial expert says many entrepreneurs are unaware of the importance of proper account receivable management. Many of their customers may have a habit of not paying their outstanding dues on time. If this is the case, these businessmen are bound to face cash flow problems. However, they can overcome this problem by taking the following 3 important steps:
- Streamlining their invoicing processes
This is first thing entrepreneurs need to do to improve their establishments’ account receivable. They should be in a position to dispatch invoices to relevant customers after making successful sales. Only then can they expect these individuals to clear their dues on time.
Moreover, the documents should clearly state all the relevant information. These include the description of the products, the per unit price, quantity and total sales value. Moreover, the terms of payment on the paperwork should be unambiguous.
- Accept alternative modes of payment
Entrepreneurs should be open to alternative payment options their customers choose to clear their outstanding dues. These could include cheques, internet banking, electronic fund transfer, plastic money or credit cards. This makes it easier for them to get the funds they need to operate their businesses.
- Outsourcing to reliable service providers
Startup entrepreneurs don’t take long to realize how difficult it is to manage account receivable. Sending constant reminders to slow-paying customers to clear their dues take up most of their time. They can’t focus on other areas of their business such as production, marketing or sales. This is why it is prudent on their part to outsourcing this activity to a reliable collection agency.
Startup entrepreneurs need to understand an important fact. Proper account receivable management is essential to the success of their businesses. To clear all their doubts on this aspect, they can browse through Arnon Dror international posts on the internet. They are less likely to face a cash crunch situation if they take appropriate measures. Implementing the above 3 important tips can help them in this endeavor.