Companies that don’t manage their accounts receivable risk failing to collect funds in a timely manner or, even worse, at all.
While it’s a time-intensive duty, accounts receivable is also one of the most important tasks, an article on the Smart Business website explains.
“It lays the groundwork for solid financial footing,” Nick Heintzman, a staff accountant, tells Smart Business.
If you’re trying to manage accounts receivable based on getting paid for work in 30 days, you need to make sure your project management software or field service system can integrate with your financials. You’re already behind schedule if it takes more than a week to get a service invoice out the door.
Some companies take 30 days to produce an invoice. That’s much too slow. Companies should be able to enter the billing schedule for each project or job directly into their service software application, which should in turn automatically create an invoice for each completed work order or project milestone with a simple approval process.
The service system needs to maintain the customer’s fees and costs for time, materials and expenses, and should be ready to be invoiced at any time. This way you’re reducing the time necessary to get the invoice delivered and starting the clock to get paid faster within that 30-day window. Automation is the key to delivering faster results.
Source: Smart Business, September 2012