Revenue Leakage from Payments & Collections
Having to chase late payments is costly, frustrating and a key area of potential revenue leakage. Businesses with a recurring billing models are most at risk, but none are immune. Ensuring that your customers are paying you on time is essential to the overall success of your business. When customers pay on time, you ensure a positive relationship with your customers to help fuel and drive growth.
One way to plug the late payments revenue leak is to proactively track your customers’ invoice aging through accurate reports. Sending invoices as soon as possible is another method to reduce revenue leakage.
Collections Late payment reminder letters can be emailed automatically at customized intervals. Some businesses even choose to send a notice the day prior to the due date! Following that up with auto generated emails requesting payment on a regular schedule is an easy process with FinancialForce.
Common Rules of Thumb Catching a customer’s attention without overwhelming them with information is paramount to successful collections.
· Keep the email simple
· Remind them of the original payment due date
· Advise them when you will retry the payment method on file
· Be professional and choose your words carefully
· Recap the product or services so they understand what they will be missing if the agreement or order is terminated
As a business owner, you shouldn’t have to accept late payments. Just as your suppliers expect you to pay them on time, you should require your customers to do the same.
Credits & Debits Proper controls can also prevent customer credits from slipping through without approval. Always use an audit-able accounting system that can track and report on all activity.
Reduce Revenue Leakage with Foundry52 With FinancialForce’s recurring billing feature, our team at Foundry52 can configure your customer invoices and statements to be automatically sent at the right intervals allowing you to focus on the growing your business rather than worrying about collections.