Good debtor management in three steps

Many companies have a strong focus on sales. This makes sense, because without sales, a business will not run. But when is a sale successfully completed? As soon as the order form is signed? As soon as the product or service is delivered? Or from the moment the invoice amount is in your account?

A sale is only successful when the money is in your account, and that's exactly where the pinch comes at many companies. Efficient accounts receivable management is often not very high on the list of priorities.

However, it is simple to set up a system that allows you to react quickly to unpaid invoices. With these three steps you immediately put your company on the right track:

1. Make a step-by-step plan for your accounts receivable management

Make a step-by-step plan that defines what should happen if an invoice is not paid. Every member of your company should know at all times how the plan works. It will be different for each company, but these questions will help you on your way:

  • How soon after the due date of the invoice will we respond?
  • How will we respond? By phone, e-mail, or registered letter?
  • How many times will we respond?
  • How much time shall we leave between each response?
  • Do we respond in the same way for each customer? If not, how do we differentiate?
  • What do we do if there is still no payment after the full path has been followed?



2. Stick to the plan

Inform everyone in the company of the step-by-step plan. Of course, the financial department but also the marketing and sales departments. Apply the plan consistently from day one. There are numerous accounting and CRM packages on the market that automate most of the process but, always keep your finger on the pulse, and make sure someone always has an overview of the phase each file is at.

3. Provide a closing piece within your accounts receivable management

With a well-organized debtor management methodology, the number of unpaid invoices decreases. But, unfortunately, this is not a solution for all files. If you reach the end of your plan and still do not have satisfaction, you need to take 'external steps.' More and more customers are assuming that this will not be pursued, so it's up to you to systematically and consistently make it clear that you don't accept non-payment. Zero tolerance.

Has your client still not paid? Then use Unpaid as the final step in your plan. We will collect your undisputed BtoB invoices quickly and efficiently. Start up your file in a few simple steps and we'll get straight to work.

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Do you want some more information first? Call us on +32 9 396 34 00 or let us know when we can reach you here.