Accounts receivable management: 5 tips to improve receipt control
Posted: Sun Jan 19, 2025 9:59 am
Purchases, sales, hiring, dismissals, withdrawals, financing… All of a company's movements must be recorded in detail, or rather, in the management system .
Good financial control involves keeping all accounts payable and accounts receivable up to date. This way, you can better plan expenses and investments , keeping the company healthy.
Strict payment control avoids surprises , as you will know when your customers will pay you, how and, if they are in arrears, what to do next .
Accounts Payable vs. Accounts Receivable
Accounts payable and receivable measure the student database health of a company.
Despite the similar names, the functions are quite different. See:
What are accounts payable?
Accounts payable are the financial obligations that the institution assumes with its employees and suppliers, as well as tax obligations.
Some examples would be:
Purchase of goods or raw materials;
Payment of wages and benefits
Payment of taxes;
Maintenance.
And what are accounts receivable?
Accounts receivable, in turn, are the amounts of money that customers or suppliers owe the company , both in cash sales and in installment sales.
Ideally, a business should have more accounts receivable than accounts payable. Otherwise, it will have more debt than revenue.
Cash flow will tell you whether your company has more accounts receivable or accounts payable.
The importance of accounts receivable control
As we said, efficient financial management predicts scenarios and facilitates long-term planning.
If you intend to buy new equipment, for example, you need to assess whether you will have the “breath” to do so.
By improving accounts receivable management, you will know:
How many accounts are open and what is the amount;
What are the overdue and upcoming bills?
Who are the customers who do not pay on time;
Which customers are responsible for the majority of your revenue;
Schedule your charges;
Improve your cash flow.
How to structure accounts receivable
The first step to structuring accounts receivable is to create a routine .
Set a time of day to fill out a spreadsheet containing:
Customer name;
Code or identification number of the purchase made by him;
Date of purchase;
Payment due date;
Number of installments (if applicable);
Payment type (card, bank slip, check…);
Purchase value;
Status (received / to be received).
In a management system, this process will be automatic, as the intelligence behind this technology can identify the progress of each of the open accounts.
Once this is done, monitor the results month by month in order to identify areas for improvement and optimize the financial strategy.
5 tips to put into practice today
Now, let’s get to the tips! What can you do today to improve your accounts receivable management?
Good financial control involves keeping all accounts payable and accounts receivable up to date. This way, you can better plan expenses and investments , keeping the company healthy.
Strict payment control avoids surprises , as you will know when your customers will pay you, how and, if they are in arrears, what to do next .
Accounts Payable vs. Accounts Receivable
Accounts payable and receivable measure the student database health of a company.
Despite the similar names, the functions are quite different. See:
What are accounts payable?
Accounts payable are the financial obligations that the institution assumes with its employees and suppliers, as well as tax obligations.
Some examples would be:
Purchase of goods or raw materials;
Payment of wages and benefits
Payment of taxes;
Maintenance.
And what are accounts receivable?
Accounts receivable, in turn, are the amounts of money that customers or suppliers owe the company , both in cash sales and in installment sales.
Ideally, a business should have more accounts receivable than accounts payable. Otherwise, it will have more debt than revenue.
Cash flow will tell you whether your company has more accounts receivable or accounts payable.
The importance of accounts receivable control
As we said, efficient financial management predicts scenarios and facilitates long-term planning.
If you intend to buy new equipment, for example, you need to assess whether you will have the “breath” to do so.
By improving accounts receivable management, you will know:
How many accounts are open and what is the amount;
What are the overdue and upcoming bills?
Who are the customers who do not pay on time;
Which customers are responsible for the majority of your revenue;
Schedule your charges;
Improve your cash flow.
How to structure accounts receivable
The first step to structuring accounts receivable is to create a routine .
Set a time of day to fill out a spreadsheet containing:
Customer name;
Code or identification number of the purchase made by him;
Date of purchase;
Payment due date;
Number of installments (if applicable);
Payment type (card, bank slip, check…);
Purchase value;
Status (received / to be received).
In a management system, this process will be automatic, as the intelligence behind this technology can identify the progress of each of the open accounts.
Once this is done, monitor the results month by month in order to identify areas for improvement and optimize the financial strategy.
5 tips to put into practice today
Now, let’s get to the tips! What can you do today to improve your accounts receivable management?