Most start-up entrepreneurs focus much of their attention on generating adequate revenues. They assume their establishment’s bottom-line profits measures their success or failure in the marketplace. Unfortunately, these proprietors overlook the fact that they also need money in their cash registers. Maintaining proper and steady cash flow is just as important for these proprietors. Otherwise, conducting their commercial activities in the marketplace may prove to be a tall order. These businessmen should be able to pay their suppliers, employees, and meet their operating expenses. If this is not the case, they may have to wind up their concerns.
Arnon Dror Creo Americas – How can entrepreneurs improve the business account receivable process?
The world of international business and finance can boost many proficient professionals. However, very few of them can match Arnon Dror’s level of achievements. He is a cut above the rest in this area. This Hebrew University MBA graduate has more 20 years of valuable experience under his belt. During this time, he has been able to discharge the office of Vice-President for numerous companies. These organizations include Xerox, Presstek Inc., Scitex, Creo Inc., Kodak and Creo Americas. People managing these establishments credit him turning their concerns into profit-generating entities. They acknowledge his contribution to the success of their corporate reconstruction schemes. Many of them even say he is a specialist in many diverse fields. These include cash flow management, international taxation, ERP integration, strategic planning, business negotiations, and corporate mergers.
The Arnon Dror Creo Americas team of professionals say most entrepreneurs have to deal with debt-collection issues. Many of these businesses have slow-paying individuals and organizations in their clientele. Almost all of these customers don’t seem to bother clearing their outstanding invoice on time. It isn’t surprising that many of these proprietors often experience a cash crunch. However, these specialists explain they can overcome this situation by streamlining their accounts receivable process. To achieve this objective, they should consider and implement the following 2 important tips:
- Entrepreneurs should revamp and automate their business’ invoicing process
Generally, entrepreneurs raise invoices on their customers after every successful credit sale. However, they generally send such documents to these individuals and organizations via post. On top of this, they grant them a grace period to repay such outstanding dues. These proprietors should instead opt to deliver such bills to such clients via email. This way, they can’t give an excuse of not receiving such paperwork on time.
- Changing the payment terms for their customers
These businessmen should insist their customers clear their outstanding dues as soon as receive their invoices. This is the next step they need to take after automating their account receivable process. They should make such payment terms very clear on the bills they raise on their customers. These entrepreneurs may find some of these individuals and organizations refuse to change their slow-paying habits. In such a case, they should consider imposing penalties on such clients. In the worst-case scenario, they can even take legal action.
The Arnon Dror International team of professionals say entrepreneurs need to automate their accounts receivable process. This is a necessity for them rather than a luxury. It helps to improve their business’ cash flow position. Implementing the above 2 important steps can enable them to achieve this objective. This is a decision they won’t regret making.