Believe it or not, management impacts the attitude of even indirect employees. Accounts Receivable is an often thankless job, but it holds the key to the cash flow into your business.
Something that may help your teams work ethic is by showing support in some of the following ways: committing to improving the process, focusing on accuracy in fulfillment and invoicing, and ensuring good tools to use during the process.
Making a commitment to yourself to improve the AR process is the first step toward a successful accounts receivable program. Saying you’ll help the team is one thing, and actually doing it is another. Checking in on progress every couple weeks doesn’t count. Work with the team to see what processes are taking up the most time and how they can be streamlined, and then deliver. If that means getting better invoicing software, then get the software. Your employee’s time is more valuable than the cost of most accounts receivable software on the market.
One of the most commonly reported factors in accounts receivable disputes are errors in fulfillment of orders as well as on invoices. When your accounts receivable team has more time to focus on the accuracy of the invoices, they can prevent more errors from causing kinks in your cash flow. You can work with your delivery team to make sure that there are no orders on their end. Clearing up these simple errors can remove up to a third of your accounts receivable disputes, meaning you get paid on time.
Abraham Lincoln said that if he were given 8 hours to cut down a tree, he’d spend the first six sharpening his ax. The tools your provide your accounts receivable team can either help them, or impede their efficiency. If they are stuck using accounting software that isn’t designed for the accounts receivable process, that cuts into valuable time your team could spend on getting invoices paid. If the invoicing software doesn’t play well with your CRM, that’s also a problem. Software with invoice automation and credit scoring take much of the tedium out of the invoice collection process. Give your team sharp axes (good software and good support).