If you extend credit to your consumers, you have to have a credit policy by using web based accounting software. A credit policy sets, “guidelines that disclose tips on how to pick which clients are sold on open account, the actual transaction terms, the limits established on outstanding balances and how to manage overdue accounts.”
Once established, you need to stick to it. Having a credit policy that is not enforced is useless.
According to my GP cloud, an internal ERP system is important to keeping yourself on top of your accounts receivable and even making your credit policy.
These are few features of an integrated ERP system, which helps you to enforce your credit policy and protect your business:
1. Be sure that sales of products together with services to your customers are accurately documented on a well-timed basis. Sales really need to be effectively captured to lower or eliminate billing disagreements with your customers. Sales have to be documented on a regular basis making sure that payment terms based on document date begins ASAP.
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. Present business warnings to inform credit supervisors and others when ever specific accounts are violating your credit policy to make sure that corrective steps can be taken instantly.
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 allowing for time entry and flexible invoicing methods will help you stay on top of your credit policy.
For more details around online accounting software visit at: www.mygpcloud.com
Article Source - http://blog.mygpcloud.com/2012/07/define-your-credit-policy-and-stick-to-it
Information Blog : Online business software on livejournal
Once established, you need to stick to it. Having a credit policy that is not enforced is useless.
According to my GP cloud, an internal ERP system is important to keeping yourself on top of your accounts receivable and even making your credit policy.
These are few features of an integrated ERP system, which helps you to enforce your credit policy and protect your business:
1. Be sure that sales of products together with services to your customers are accurately documented on a well-timed basis. Sales really need to be effectively captured to lower or eliminate billing disagreements with your customers. Sales have to be documented on a regular basis making sure that payment terms based on document date begins ASAP.
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. Present business warnings to inform credit supervisors and others when ever specific accounts are violating your credit policy to make sure that corrective steps can be taken instantly.
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 allowing for time entry and flexible invoicing methods will help you stay on top of your credit policy.
For more details around online accounting software visit at: www.mygpcloud.com
Article Source - http://blog.mygpcloud.com/2012/07/define-your-credit-policy-and-stick-to-it
Information Blog : Online business software on livejournal
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