Contents tagged with Accounts Receivable Best Practices

  • How do you accommodate customers who don't want to pay online today?

    September 26, 2013
    As we mentioned recently in this blog, you can't rely on all of your customers going online to buy items and make payments. A number of both consumers and business procurement specialists are skeptical of online shopping and they are wary of putting their information out there in a virtual environment. While it's true eCommerce may one day be the only option consumers will have and you could have to implement strategies to ensure they buy from your eCommerce site, the question now is, what do you do in the interim? 

    Today, processing all B2B payments online won't allow you to assist the wide range of your customers. Procurement specialists who either aren't as savvy with online tools or prefer traditional methods need to be accounted for, because if you don't you run the … more

  • Study shows why invoices aren't always paid on time

    August 09, 2013
    In order to maintain their economic viability, vendors must be paid in a timely manner. However, ensuring that invoices are paid on time is easier said than done. 

    There are numerous factors that can impact the time it takes to pay an invoice. In an era of economic uncertainty, this has become an increasingly complicated issue, which is why a study conducted by TeamSync attempted to get to the bottom of it. According to a survey of 100 CFOs, controllers and other accounting executives working in the U.S., 49 percent said their customers didn't pay on time because of invalid or missing information on both purchase orders and invoices. 

    Mark Wilson, the CEO of TeamSync, stressed the importance of accounts receivable best practices in a statement, indicating that … more

  • Study: electronic invoicing can save vendors up to 80 percent

    May 14, 2013
    The accounts receivable department has an important role to play in any business. The timeliness and efficiency of invoicing can dictate the effectiveness of a transaction and go a long way toward determining whether or not the party receiving the invoice will maintain a relationship with the company or will simply be a one-time customer.

    Accounts receivable best practices involve streamlining the invoicing process to ensure a quick payment and a happy customer. This is even more important in the B2B sales cycle because accounts payable clerks at companies do not have time to wait to receive their invoices and will not put up with extensive delays.

    To expedite the process, many companies are turning to electronic invoicing. This blog has talked about the benefits of this innovative … more

  • Brothers investigated for accepting payments for fraudulent invoices

    January 08, 2013
    Following accounts receivable best practices is becoming increasingly important as more organizations have recently been found distributing fraudulent invoices.

    According to an article from the Fox affiliate in Kansas City, Missouri, a California-based telecommunications company is under investigation for sending invoices to a number or organizations that it never provided services to. Brandon and David Bell, the two brothers in charge of the business, sent what they claimed to be promotional material disguised to look like invoices.

    "The invoice looks real and asks the recipient to pay $425 for a telecom maintenance agreement," the article says. "Thousands of these invoices have been mailed out by a company called US Telecom, based in Ontario, California. Many recipients have … more

  • The importance of efficient invoice processing

    October 11, 2012
    In today's uncertain economic climate, unpaid invoices can seriously hinder a company's earning potential. If businesses provide services to their clients without being fairly compensated in a timely manner, their own finances could be hurt, which is why all vendors must ensure they are following accounts receivable best practices.

    This blog has spent a significant amount of time offering tips as to how to induce a response from delinquent customers, but before vendors can reach this point, they have to ensure they are doing things correctly on their own end. Businesses have a hard enough time as it is trying to get their customers to pay on time, so they cannot afford to give their customer any excuse to not pay full amounts in a timely manner.

    Just like payment processing, invoice … more

  • Electronic invoicing grew 20 percent last year among B2B vendors

    September 25, 2012
    More and more companies today are taking advantage of the digital revolution by reducing paper trail and generating electronic documents. Not only is this good for the environment, it promotes operational efficiency, reduces unnecessary spending and establishes stronger security of company information. That's why an increasingly high number of vendors are sending out electronic invoices.

    The independent e-invoicing firm Basware and Billentis recently determined that e-invoicing jumped 20 percent in 2011 within the B2B sector. This was a significant increase, as e-invoicing is slowly becoming the preferred method among all merchants.

    There are a number of reasons for this impressive growth - including an increasing number of strong electronic invoicing solutions and a nationwide effort … more

  • How to handle late payments

    August 23, 2012
    Using accounts receivable best practices can certainly improve the rate at which invoices are processed and paid, but as we have discussed numerous times in this blog, administering best AR procedures does not guarantee that invoices will be paid on time.

    In today's uncertain economy, businesses that don't receive their money in an appropriate amount of time struggle to remain financially viable, because oftentimes they are relying on that money to make their own payments. Failure to collect owed money on time can initiate a dangerous cycle, so it's important that businesses do everything they can do increase the chances that they get paid.

    The online publication Business 2 Community says that there are several factors businesses should consider when processing invoices. Most important, … more

  • The best practices for procuring and implementing an e-Invoicing solution

    July 30, 2012
    Procuring an e-Invoicing solution is a step that many businesses are taking today. Doing so can streamline the payment process, eliminate an excess of paper and keep all important financial information consolidated and easily accessible. However, simply implementing a solution will not produce the desired business value unless accounts receivable best practices are followed.

    Internet provider DHL began the practice of e-Invoicing in 2007 as a way to improve operational efficiency within its different finance departments. At a recent e-Invoicing conference held earlier this year, DHL's senior process consultant Gabrielle Philippens spoke of the overwhelming success the company has experienced since transitioning from traditional invoicing to a digital format. She also shared a number of … more

  • Paper vs. electronic invoices: Can't we have both?

    July 25, 2012
    The battle between paper and electronic invoicing has raged for the better part of the 21st century. Innovations have been made by paper supporters to improve the process of capturing printed data, but those on the side of electronic invoicing are suggesting that scrapping the paper process altogether is a more effective method.

    Both have valid arguments to support their stance. Proponents of electronic invoicing argue the value of efficiency, streamlined processes and green business practices. Those still holding onto paper invoicing methods say that transparency and accountability are key components of payment processing and that having physical invoice records will promote both. 

    The truth is, no argument is more valid than the other. In fact, a combination of the two methods … more

  • Upstate New York governments face impending financial crisis

    July 16, 2012
    While the eurozone remains immersed in an economic crisis brought on by financial failings in countries such as Greece, several local governments in the United States are about to experience similar events. Despite a lack of publicization, the erratic spending habits of a number of local New York offices is about to create an economic stir similar to that in Europe, according to the Albany Times Union.

    Richard Brodsky, a former state assemblyman at Westchester County, wrote a blog piece for the Times Union last month explaining that poor planning in many local government offices across upstate New York has led to a series of unsustainable fiscal systems. Brodsky explained that government officials have been using non-recurring revenues to satisfy recurring payments. While that method may … more