Simple 8 Steps for Improving your Accounts Receivable Process
                     Simple 8 Steps for Improving your Accounts
Receivable Process
You need to set up procedures for accounts receivable if you extend credit to your 
customers. Account receivable arises when you allow customer to take immediate 
possession of a product or receive service in return for a promise to pay in future. In
other words, this means you allow them to take possession of your products before 
they pay you.
If  your business accepts credit  cards, credit  card company manages risk.  But if
customers are going to pay with cash or cheques, you must manage verification of
payments and risk. X Trustworthy Source US Small Business Administration, US
government agency, focuses on supporting small businesses. The Go to Source
accounts receivable services includes setting up procedures for extending credit,
generating invoices, maintaining records of payments due and payments receive,
and performing accounting functions.
What Is an Accounts Receivable?
Its vital that you stay on top of your Accounts Receivable balances. This way, you
can make sure that customers are reminded when payment due dates draw closer
as well as follow up when payments are late.
If you are using Accounting software, you can run a weekly Accounts Receivable
report to see which accounts are past due and which will soon be due. This can
help  you  collect  past  due  accounts.  Proper  Management  of  your  Accounts
Receivable balances is important.
Accounts Receivable For Business Owner
If you re new business owner, or have recently switched accounting methods from
cash  to  accrual  accounting,  you  may  not  be  familiar  with  accounts  receivable.
Accounts receivable plays an active role in the accounting cycle.
Accounts receivable totals directly affect your net income since they are considered
revenue, but subsequent collection of any receivables balances do not affect your
retained earnings, since they are already part of your revenue total.  In addition,
accounts receivable is permanent account and is not affected by closing entries.
Sending an invoice to your customers promptly helps to ensure that payment will be
made promptly.
Send invoice  immediately:  Dont  wait  week  before  sending  invoice.  Once  the
purchase is complete, invoice should be completed as well.
Use  accounting  software  If  you  can:  One  of  the  nice  things  about  using
accounting software is that once a sale is process, you can immediately invoice
your customers.
Be sure terms are front and center on your invoice: If you expect payment in 30
days, be sure that note is prominently on the invoice. Remember, your customers
ca pay you on time if they do know when payment is due. Note that sales tax is not
included in this journal entry, because sales tax remittance is handled in a separate
transaction. The easiest way to post customer payments is by accepting payments
online. However, many people still have their customers remit payments through
mail.
8 Best Practices To Improve Accounts Receivable Processes

See More : https://visual.ly/community/Infographics/business/8-best-
practices-adopt-improve-accounts-receivable-processes
Here are some tips to manage customer payments properly:
Multiple payment options:
Quickest  way  to  receive  payment  is  to  provide  your  customers  with  numerous
payment  options.  While  online  payments  offer  greater  convenience,  some
businesses still prefer to pay bills by check. Make sure your customers have the
option to do both.
Online payments are posted accurately:
If your accounting software automatically posts payments from your bank, be sure
that  payment  is  posted  properly.  In  most  cases,  automatic  posting  is  complete
without issue, but there are times when payments are put in limbo or even posted
to the wrong account.
Contact  us  here for  the  help  in  improve  your  business  accounts  receivable
process and receivable query.