AR Aged Receivables - Instantly Improve Cashflow

Improve Cashflow after watching this 5 minute video

 

 

BI4Cloud Business Intelligence makes it easy to:  

Identify large overdue invoices

Focus your collection efforts on large overdue invoices first to ensure the biggest impact on cashflow. Don't just chase them in alphabetical order!

  • Run the AR Receivables Favourite Report
  • Sort on the Total Due column to find your largest debtors
  • Sort any column to find the largest amounts owing in that bucket
  • Analyse by Top 5, Top 10 
  • Save your report

AR_Aged_Receivables.png 

 Identify Invoices that are Past Due

 Next target invoices that are long overdue or as soon as they become due.

  • Run the AR Receivables Favourite Report
  • Select Filter 
  • Go to Numeric Filter - Click Here to learn how to set Numeric Filters
  • Filter for say all invoices > 60 days past their Due date; or
  • Filter by the Due date range e.g. all invoices Due Last week
  • Save your report

 Filter_for_Overdue.png

Focus on Overdue Invoices and report at the Invoice Detail level: 

  • Filter for Overdue invoices as above
  • +/- Col to hide any unnecessary columns

Filter_AR_by_Due_Date.png

  • Change Analyse by to Invoice Detail to see line item detail by invoice
  • Then Group by the Customer 

 AR_by_Invoice.png

Set Credit Limits and Enforce them 

A clear policy to approve the setting of Credit limits and then to actively monitor these Credit Limits will go along way to help limit the risk of customers defaulting.

Placing a customer On Hold or refusing additional Credit is often your best bargaining tool to get overdue balances paid! 

  • Run the AR Receivables Favourite Report
  • Select +/- Columns 
  • Select Credit Limit to Show 
  • Save your report

Monitor_Credit_limits.png

Keep track of Customers On Hold.

  • Run the AR Receivables Favourite Report
  • Filter for - Customer on Hold = Yes

Customers_on_Hold.png

Make Salespeople Accountable

Sales people have a vested interest in getting customers off hold or below their credit limit so they can sell them more! Salespeople can also be very persuasive, so get them on board to help. They can chase outstanding balances, find out if there are issues with your product or service that is causing the payment delay or identify if the customer is having financial problems.

  • Run the AR Receivables Favourite Report
  • Group by Customer Salesrep or the Salesperson on the Invoice (Click here to learn what is the difference) or
  • Filter by Sales rep 
  • Save your report and schedule it to email off to the Sales Rep daily

Group_by_SalesRep.png

Chase, Chase and Keep Chasing

Schedule time to regularly and systematically chase all outstanding receivables. 

If the time you spend chasing receivables could be spent doing something better then consider Automating your Collection process.

We recommend looking at this great tool

ezyCollect to Simply Get Paid Faster

Another great resource to help get back in control of your receivables is:

Strategies for Optimising your Accounts Receivable -by Deloitte

 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

Please sign in to leave a comment.

Powered by Zendesk