Belonging to a C12 group goes beyond fellowship from like minded business owners. It gives us advice and direction on important topics for our businesses and tools and tactics to accomplish goals that improve how our business operates.
Helping with tactics and solutions for Cash Flow is one such example. Here are Five Tactics I shared in a recent session to improve receivables.
5 Common Failures/Mistakes:
- Approve customers carefully – Establish clear and concise policies for issuing credit to customers who can afford to borrow.
- Offer payment options – The more options and incentives you provide, the more likely your customers will pay on time.
- Maintain customer master data – Terms, contact information, and financials must be up to date and accurately reflected in billing and collection systems.
- Invoice promptly – A billing process that leverages strategies like automation, invoice generation and reporting, electronic billing systems, exception reports, and customer portals ensures accurate invoices are sent promptly.
- Know and track A/R metrics – Prioritize customers by value-at-risk and days sales outstanding (DSO), and establish an escalation process.
Similar tips to leverage your Payables are available in this month’s membership curriculum. To learn and apply it, you’ll have to request a seat at the C12 Table as our guest.
