Accounts Receivables Management

Our accounts receivable management service in Medway, Swale and Kent helps ensure a business collects payments efficiently and maintains a healthy cash flow. The accounts receivable management typically involves several structured steps.

How we carry out accounts receivables management

By following these steps and using automation processes, Figure Please help businesses reduce financial risks, prevent cash flow shortages, and support growth.

1. Assessing Creditworthiness and Setting Terms

Before extending credit, businesses should evaluate a customer’s creditworthiness by reviewing credit applications and running checks. We help set appropriate credit limits and payment terms, reducing the risk of bad debts.

2. Invoicing

We help businesses to generate and send accurate invoices promptly after a sale. Each invoice should detail the goods or services provided, payment amount, due date, and terms. Automation tools can be used to streamline this process and reduce errors.

3. Payment Tracking

We monitor incoming payments, matching them to outstanding invoices. Accounting software helps track which invoices are unpaid, partially paid, or overdue, allowing for real-time visibility of receivables.

4. Collection Processes

If payments are late, businesses should follow up with reminders, phone calls, or formal letters. They may negotiate payment plans or, in persistent cases, escalate accounts to collection agencies. A clear, consistent collection policy is key to minimising overdue balances.

5. Reconciliation and Reporting

Regular reconciliation ensure that payments recorded in the accounting system match actual bank deposits. We generate accounts receivable aging reports and monitor key metrics like Days Sales Outstanding (DSO) to identify trends and potential cash flow issues.

6. Customer Communication

Maintaining open communication with customers helps resolve disputes quickly and fosters good relationships, which can encourage timely payments.

Lets Discuss Managing Your Accounts Receivables