10 Tips on How To Manage The Receivables

1. Be proactive – actively chase all outstanding debt and adopt a structured process
2. Invoice the correct selling price, quantity and tax amount
3. Ensure the invoice address is correct
4. Document your credit control policy and procedures
5. Issue a copy of your terms and conditions of sale, including your credit control policy, to customers and seek a signed acceptance by the customer of the terms.
6. Credit check all prospective customers
7. Set credit limits for all accounts
8. Check that the value of all new sales orders received will not exceed the customer’s credit limit
9. Raise sales invoices promptly
10. Review all outstanding debt on an on-going basis, and take recovery action when necessary

Manage Your Business Cash Flow