Before any definition of accounts receivable, it is important to highlight that both must be part of the company’s financial planning, which comes even before the action of paying or receiving.Therefore, when this information is placed in a spreadsheet or in a management system (ERP), these values are a forecast of money.But, specifically, in accounts receivable, everything that is expected to enter the company’s cash register is recorded, such as inflows (increases) and decreases (reductions).
You can place credit, promissory notes or bills of exchange in this account, for example.
How to control Accounts Receivable?
It is always good to remember that investing in effective tools, such as a management system, for example, is an excellent way to enhance financial control.
However, even if you still use spreadsheets or rely on an ERP, it is important to have dedication to optimize your results and avoid a lack of organization.
So it is extremely important to maintain an accounts receivable organization.
By doing this, you can reduce your customers ‘or suppliers’ defaults and optimize financial results.
Organize all your accounts receivable
Where do you record all accounts receivable currently?
It is important to have an overview of all the company’s planned financial inflows, so that you are always aware of all dates.
You can create categories and organize your accounts by customers, by payment type or otherwise, as long as it makes your company’s day-to-day easier.
Through this organization, you will be able to see the future of all your transactions and will be able to prepare in advance to pay expenses.
If you don’t know where to start, check out some category ideas:
- installment sales;
- cash sales;
- receipt of suppliers;
- among others.
The important thing is that you find the category that suits your day to day and deliver what the company needs.
One tip is to calculate the average default rate of your company and monitor this data.
Plan your cash flow
With the organization of your accounts, it is possible to know how much money will enter the account in the next few days and to organize your cash flow.
At this point, you can also must
- organize payments;
- organize investments that can be made;
- and also mark sales in arrears or under negotiation to be paid in the future, as well as interest applied to them.
To assist in this control, it is advisable to monitor the payday.
You should analyze the days when each customer pays their debts and identify the periods when they will have cash at the cash register to settle their accounts payable.
Learn how to charge your debtors
You should always be prepared to charge your debtors.
To do this, you must have a collection department or designate a professional who will be responsible for this task.
It is worth mentioning that in order to carry out these charges it is important to have the right arguments and be attentive to the Consumer Protection Code, so that the practice is considered legal.
In this way, a deal done in the right way can recover part of the money that was lost.
Make long-term financial planning
Finally, in addition to controlling accounts payable and receivable, it is important to have long-term financial planning.
In this way, the company is committed to guiding its employees and management to the objectives that will be necessary for the company’s growth.
How is the Accounts Receivable routine?
The Accounts Receivable routine varies according to the company’s size and segment. After all, micro and small companies are not expected to have a flow of receipts as large as large department stores or world famous franchises, for example.
But, regardless of the amount of receipts to be recorded, on a daily basis the person responsible for Accounts Receivable follows, in most cases, the following steps:
1. At the end of each day and after completing the daily billing routine, the person generates the billing remittance file and imports it into internet banking.
2. Through internet banking, the person generates the collection return file and imports it into the ERP, identifying the paid slips and making the withdrawals, usually automatically.
3. After this, check the bank statement of yesterday if there was any receipt through transfer and if so, make the identification of the customer and write it down in the specific current account.
4. Upon completion of all write-offs from the previous day’s receipts, the customer’s collection routine starts, as payments have not been identified.
5. It is suggested that the monitoring of the collection routine be done through the ERP and leaving all conversations recorded.
6. When negotiating with customers, payment slips are generated, sent to customers and bank remittances are made.
7. The deposit of checks received and their clearing are also monitored.
8. If the check returns, the reason and the possibility to resubmit are analyzed and in cases where it is not possible to resubmit, contact with the customer begins.
Manage Accounts Receivable with a financial conciliator
A tool that manages bank collection allows an assertive monitoring in relation to the amounts of accounts receivable from the company, bringing important and timely information about the forecast of accounts receivable, percentage of default, amounts charged to be credited on the day, divergences between the amounts charged and the amounts credited, auditing of fees charged by banks in relation to the services provided.And then, did you like this article about what accounts receivable is?
