Every year, the ending months bring a gala time in everyone’s life. From the festive mood swirling everywhere to the beginning of vacation times and parties, everyone looks eagerly for the holiday seasons. However, for those managing their start-ups or involved in managing receivable accounts, this time comes crashing down overwhelmingly. With a limited number of working days, the pressure of finishing off all the account cycles, and, most importantly, ending the year on a positive note, all builds up even on the reputed Dallas collection agency. So, here’s a brief guide to a few tips for the successful recovering of receivable accounts.
What Are Receivable Accounts?
For learning the tips on successful AR recoveries during the holiday season, begin with a brief outline of what receivable accounts are. As the name suggests, account receivables are those pending payments or proceedings that a company is about to receive from its clients post their requisite goods or services get delivered to them. Thus commonly referred to as AR indicates the credit extensions for any company, and this pointer appears in the current assets section of any balance sheets. CFOs roll over these accounts for short term business running costs. And thus, when it’s the year-ending season, an additional pressure of clearing all the receivable accounts comes into play. However, due to comparatively shorter working days incurring the cost are difficult.
Tips for Incurring AR during Holidays
Here’s how you can successfully incur the pending payments during holiday seasons.
1. Buckle Up and Be Proactive
Remember that December is the month with mostly reduced staff and hence reduced workforce. Thus being active from the very beginning stays as the only option during these months. The best possible way of being proactive is by settling all revenues and unsettled transactions with customers beforehand.
Another plausible way is if you and your team start checking and tallying all outstanding beforehand and device a formidable action plan. Once you frame a proper action plan for every single unsettled transaction, start with it immediately. Remember that during the festive season, there is so much to do, even a small unintended delay can cost you an entire payment unsettled. Another vital aspect is follow-ups with your clients. In successful AR recovering, following up politely with your clients plays an essential part. However, while being polite during follow-up chats, remember the longer the delay in payment, the less likely it is to get settled. So be sure to stick to a specific time slot only.
2. Expediting Payment
Sometimes there can be few customers who are hesitant to pay via digitalized modes or are not adept at electronic transactions. These are the areas you need to asses and analyze beforehand. For those cases, opt for methods like delivery by courier or prepaid overnight delivery envelops, etc. Thus a detailed assessment of the client’s transaction patterns is necessary. The sooner you start, the faster you can come with counteractive strategies and recover your payment within holiday mass.
3. Always Be Courteous
Collecting your dues during holidays is essential, but, maintaining a cordial relationship with your customers is even more critical. Customer retention comes as the first step for any successful business; thus, never forget to be kind, patient, and courteous with your clients. As busy as the holiday season gets, it can be frustrating as well. So try to be as polite as possible while pressing them for payments. Sometimes adding seasonal greetings or giving some value-added coupons or discounts or wallet cashback on future deals can help you in staying good terms with your clients.
In case all means fail, and finance team carries over the pending payments to the New Year’s, don’t forget follow-up calls post the New Year season along with year greetings.
4. Be Flexible
It is valid for all seasons account receivable recovery. Different customers have different preferences or comfort with varying modes of payment. So while you are strategizing actionable plans, make sure to add various methods of payment.
5. Be Prepared For the Worst
In the worst-case scenario, if the situation of your clients ends up even worse than you could have anticipated, trailing the loan to New Year’s will only stretch tiers on your business. In such situations, it’s best to take desperate measures to secure your business.
6. Keep Check
A significant job role in AR recovery management is to keep checking the patterns and nature of every customer you have. It will help you to recognize future bad debts, customer preferences, etc.
Handling AR recovery, along with running a business, might be a tad confusing. Thus outsourcing account receivable recovery, especially during peak holiday seasons, can land you seamless hassle-free payments from professional experts. So look out for professional experts with experience, expertise, and excellence and recover your outstanding this holiday seamlessly.