It has been said that a sale is not truly a sale until you have collected the money. With this "truth" as a basis, your collection system is one of the most important systems your business needs to have and use.
Cash flow in your business is vital to your success. If you operate your payment terms as cash at the time of service, collecting money may not be much of an issue for your business. If your business, like many in today's business world, extends credit to those that use their goods and/or services, collecting money may be more of an issue.
In the upcoming weeks we will explore what is needed to have an effective collections system that will allow you to both close the sales loop and keep your customers happy. We will do this by looking at the following things -
- What is your current accounts receivables system and how effective is it?
- What is your current collections baseline, what system are you using and how is it working for your business?
- What is the relationship between your collections system and customer service?
- What needs to be in place to balance your financial needs with those of your customers?
- What can be done in your collection system to build relationships?
You have worked hard to gain customers, to gain market share in your business. Take the time to explore what you can do to make your collections system a vital link to building your customer relationships and building your business. Next week we will delve into your current accounts receivable system. In preparation, review the payment terms provided to your customers, how those terms are communicated, and your accounts receivable aging report.
With this information at the ready, you will be prepared to begin the process of building your business by developing an effective collections system that will allow you to truly "close" the sale.