When you extend credit to your consumers, you need to have a credit policy by making use of web based accounting software and online great plains. A credit policy sets, "guidelines that explain the best way to choose which customers are sold on open account, the specific payment conditions, the limits set on outstanding balances and the way to manage outstanding accounts."
When times get tough, your customers may be enticed to pay your invoices. According to MY GP cloud, do not let them. When you allow your customers to violate your credit policy, many things can happen.
Once established, you need to stick to it. Having a credit policy that is not enforced is useless. Otherwise, you can get into troubles like agreeing to your customer's weak payment overall performance may seem like it truly is strengthening your relationship with each other. It is not. Agreeing to very poor payment overall performance tends to pervert an otherwise excellent business relationship. Their bond could just continue to weaken. Once your customer knows that you will accept poor payment performance it will entice them to take further advantage of you.
In line with online great plains, an internal ERP system is necessary to staying on top of your accounts receivable as well as conducting your credit policy.
According to MY GP cloud, while it might appear counter-intuitive to believe that your client relationship may improve by not taking slow payments, it is not. I have seen it happen sometimes. Adhere to your credit policy.
These are few features of an integrated ERP system and online great plains, which helps you to enforce your credit policy and protect your business:
1. Guarantee that sales of items together with services to your clients are accurately recorded on a well-timed basis. Sales should be exactly captured to reduce or to get rid of billing disagreements with your customers. A product sale has to be documented on time basis to ensure that payment terms based on document date may start immediately.
2. Provide a continuously updated listing of accounts outstanding so that credit managers and others are fully informed about the business's investment in accounts receivable.
3. Supply business notifications to notify credit administrators and others whenever certain accounts are breaking your credit policy to make sure that corrective steps can be taken right away.
Sometimes your customers try to make their problems your problem. This is completely unacceptable, as you have enough to worry about and you do not need more problems.
The professional services industry has significant challenges in these areas. Often time, businesses in this industry invoice their customers for time spent by their employees to deliver services for their customers. Getting employees to record time on a timely basis and having the time properly reviewed and approved can be problematic. Then getting all the recorded time priced properly and included on customers' invoices can be a long and tortuous process.
An incorporated ERP system and web based accounting software from MY GP cloud allowing for time entry and flexible invoicing processes will assist you to adhere to top of your credit policy.
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