When you expand credit to your clients, you require to have a credit policy by using web based accounting software. A credit policy sets, “guidelines that will disclose how you can pick which clients are sold on open account, the actual transaction terms and conditions, the restrictions fixed on outstanding balances and the ways to handle outstanding accounts.”
Once established, you need to stick to it. Having a credit policy that is not enforced is useless.
As outlined by my GP cloud, an integrated ERP set up is imperative to remaining on top of your accounts receivable and even performing 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 items and solutions to your consumers are exactly recorded on a well-timed basis. Sales should be effectively saved to lessen or even eliminate billing disagreements with your consumers. Product sales have to be documented on timely basis to make certain that payment terms based on document date will start as quickly as possible.
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. Provide business alerts to notify credit managers and others when certain accounts are violating your credit policy to make certain that corrective measures can be taken promptly.
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 integrated ERP system and web based accounting software that allows for time entry and flexible invoicing systems will let you remain on top of your credit policy.
For additional information regarding online business software, look at: www.mygpcloud.com
Article Source - http://blog.mygpcloud.com/2012/07/define-your-credit-policy-and-stick-to-it
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