How to improve your debt collection policies with Moonflow?

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In every company, collection policies are an important asset, since they represent a source of income for organizations. Thanks to this asset, the organization can have the resources to cover all the costs that the same entity incurs month after month.

What will you find in this text?

Tips for writing your collection policies

1. Clear definitions

2. Establishes the moment in which an accounts receivable is created.

3. Define the billing process .

4. Establish the frequency with which overdue accounts are audited .

5. Definition of overdue account .

Recommendations to improve a company's collection policies

1. Automate the sending of invoices and payment reminders .

2. Facilitates the payment of debts.

3. Keep an eye on accounts that take a long time to pay off debt

Because accounts receivable are an important asset, it is necessary to buy usa email list clear collection policies that are easy to understand for both collection managers and debtors. For this to be effective, an initial tip that we offer at Moonflow is to start by defining certain terms used in the policy; for example, “collections” and “cancel.” In this post, we will provide you with information on how to create an effective collection policy and how to improve one if you already have one in place.

Tips for writing your collection policies
The following steps will help you draft your business's collection policy:

1. Clear definitions
Start by defining the important terms that will be used in your policies, such as those mentioned above. This will avoid any confusion on the part of your debt collection agents.

2. Establish the moment in which an account receivable is created
This will allow the debtor to acknowledge that they owe money to your company, so you must establish payment terms and begin collection activities to obtain payment.

3. Define the billing process
Where it is clarified how customers can view their accounts and access their invoices.

4. Establish the frequency with which overdue accounts are audited
Ideally, this review should be done at least once a year. It is also important to assign monthly dates to review the status of accounts receivable.