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How to Manage Accounts Receivable (and What to Do When Clients Won’t Pay)

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Managing accounts receivable and pursuing outstanding invoices is essential to running a agen slot online business and maintaining cash flow, second to getting and keeping clients.

Outstanding invoices reduce cash flow and can prevent you from meeting your expenses. When a client doesn’t pay an outstanding invoice by the due date, you have to address it. But it’s also difficult and sensitive issue.

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How to improve your invoice collection process
There are a few ways you can be more effective at invoice collection. Follow these 12 tips to make your invoice collection process easier.

1. Be prepared.
If you think calling a client to request payment is uncomfortable, imagine how much worse it could be if you are wrong. Before picking up the phone, do some digging, and make sure that payment from the client was actually never received, or that the client never talked to someone in your organization to renegotiate payment terms.

It’s also worthwhile to understand your client’s business and learn about whom you’ll be speaking to. Don’t start a conversation about the collections process with the wrong person at the company. Politely ask and ensure you’re speaking to someone who can talk knowledgeably about your past due invoice.

2. Educate yourself.
Learn your rights and what the regulations are for B2B collections in your area. Knowing what you can say and do helps you confidently negotiate with a client about a past-due invoice. It also prevents you from taking an action that could jeopardize your legal position if you have to bring a case to small claims court or take other legal action.

3. Document, document, document.
When talking to a client about an unpaid invoice, take detailed notes. Document whom you talked to, and the date and time. Record what your client says. Keep copies of emails exchanged, letters sent and any other documents that provide a complete picture.

Compile your notes, and keep all your documentation together. You may need it in the event of future legal action. And if your client does eventually pay, record a formal receipt of their payment.

You may find it helpful for your documentation to send another invoice. You can even change your invoice template to better suit the client’s needs. If the client continues to say they will pay you soon but fails to do so, you can always ask them if there is an invoice template that will accelerate their accounting team’s processes.