Receivables Performance Management is a national leader in the field of accounts receivable management. The company has a wealth of experience in various different fields of activity, including small business support, media, utilities and telecommunication. The company is known for its ethics (as seen through numerous online Receivables Performance Management reviews) and recently issued a statement highlighting common accounts receivable management problems that have to be understood and solved in the modern business environment.
Invoice Problems
Receivables Performance Management starts its star report with the mention that customers do want to make payments on time but will not do this if invoice problems appear. With this in mind, it is paramount that the management team learns why the customers do not make the payments on time. Various problems can appear, like not having customer purchase orders listed or that taxes are listed although customers are tax exempt. A good system should be in place to review all the late invoices and figure out why they are not actually paid.
Invoice Delivery Problems
One thing that is well-known in collections is that customers might not actually receive invoices for a large or small business that they’ve ordered from or worked with. . At the same time, Receivables Performance Management noticed that in various situations the invoices are actually sent too late. It is really important to analyze the current system to be sure invoices are processed as often as they should be. For instance, if the invoice is drafted on the first day of the month and the payment rate is Net 30, huge problems appear if the customer receives the invoice 15 days later, which is much more common than anticipated. You need to always make sure that the invoices are delivered soon enough for the customer to be able to pay.
Resource Problems
In many situations, it is noticed there are not enough people that work on tasks related to accounts receivable management. To make matters even worse, those that work are usually not properly trained and do not know how to properly collect receivables. Working with specialists like Receivables Performance Management is thus highly recommended because accounts receivables are normally not properly understood by in-house staff. If the organization decides to use the internal resources, it is vital to properly identify team members, responsibilities and roles. Also, do ask for feedback so staff can tell you what is needed in order to get the job done right.
Unexpected Reasons
Accounts receivable management is usually a problem because the invoice has problems, it ends up being sent late or collectors work with incorrect data. However, there are many other reasons that could be identified. Customers can experience problems with cash flow or just do not want to pay because of external reasons. It is really important that the situation is properly assessed in each case and that proper strategies are implemented to make collections a stress-free action for the business. Accounts receivable management is just as important as risk assessment in the modern business environment so it is a good idea to take all the steps needed to guarantee proper steps taken.
