Abstract
Cash flow is the very lifeblood of a business.Recovering business debt can be frustrating and time consuming but it still the necessary which company should take to sustain company operation with sufficient cash flow. In this articles will provide you the tips to help you achieve btter credit control with MySoft ERP.
1. Create a clear credit control process
It is important for your business to create a clear and co-ordinated procedure for credit control with a realistic timetable, including all the stages that need to be completed and adhered to by various team members within your business.Credit terms should be set based upon how quickly you need to pay your suppliers. After establishing these terms, turn your attention to the stages involved in chasing payments. For example, you may set and control your customer’s credit terms and payment chasing with MySoft ERP’s email module:
Cost-effectively on delivery e-documents to the customer easily with MySoft ERP’s Email Module:
Eliminate manual document preparation and reduce administration and postal cost.
Automate e-statement sending to the customer for payment reminders.
Automate payment reminder emails sending to the customer for overdue invoices.
Automate and subsequent payment reminder emails to the customer for invoices that remain overdue for every 7 days.
Improve customer’s credit control process with MySoft ERP’s advance credit control management:
User defines every individual customer’s credit terms and credit limit amount.
User defines system warning or restriction on credit limit exceeded customer.
User defines management approval for customer sales orders exceeds the credit limit.
Easy “Customer Cross the Credit Limit” report generates and credit limit exceeds amount variance calculate.
Automate your payments chasing process and achieve better credit control with MySoft ERP
Customer statement report with automate e-statement broadcast features.
Automate e-statement broadcast features
Automate e-statement broadcast’s content customization
User define every individual customer’s credit terms and credit limit amount
User define system warning or restriction on invoice overdue customer
User define management approval for customer sales orders exceed the credit limit
User define system warning or restriction on invoice credit limit exceeded customer
Easy “Customer Cross the Credit Limit” report generate and credit limit exceed amount variance calculate
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2. Compile a watch list or stop list and take action
Set a ‘stop list’ or ‘watch list’ for persistently late-paying customers to ensure that you have undertaken the necessary due diligence when selling to them in the future. Customer on the stop list should not supply with any further goods or services until all outstanding invoices have been settled; customer on the watch list should no longer be offered credit terms without an up-front payment or deposit, or perhaps be asked for the full amount to be an aid when placing the order.
MySoft ERP provides easy customer account status's settings and updates:
Set customer account status and categories based on the customer’s repayment performance history.
Set customer account status to stop list status to stop further supply any further goods or services, or
Set customer account status to watch list status to exclude them from credit terms benefits.
System block issue invoice for customer’s account status under Stop List or Watch List
Easy customer account status settings
Set customer account status based on the customer’s repayment performance history
System warning and restrict further supply any goods or service for the customer stop list status account.
Customer list report generated based on the customer account status of either watch list or stop list
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3. Maintain a positive customer relationship
Building a friendly and positive relationship and clear channels of communication with those dealing with your invoices can carry you several advantages. Not only will it encourage them to purchase more goods and services from your business, but it will also improve the chances of getting paid on time – the more they like you, the less likely it is that they’ll keep you waiting.
Once the invoice has been sent, make a courtesy call to confirm receipt of the documents and check that there are no issues that may affect the payment’s promptness. Follow-up calls and emails to check the status of the debt at important intervals will also help to build an impression of a friendly and proficient business, also supplying your customer with plenty of opportunities to inform you if payment is likely to be delayed for any reason.
Maintain a positive customer relationship easily with MySoft ERP:
Opportunity to build a rapport with the customer.
Multiple rows of saving customer’s detail contact information record available with MySoft ERP.
Simple settings to determine how e-Statements or e-documents delivered to your customer.
Multiple ways of reaching your customer through call or email
Multiple rows of saving customer’s detail contact information record available with MySoft ERP.
Simple settings to determine how e-Statements or e-documents delivered to your customer.
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4. Invoice quickly and accurately
The simple way to improve your credit control procedures is by invoicing quickly and accurately. After invoices have been sent, it’s worth confirming that the invoice has been received by the correct person and informing the invoice recipient to make the payment within the credit terms allowed.
Quick and accurate sales document generate with MySoft ERP:
Generate Invoice by picking up from the previously confirmed and agreed Sales Order’s information
Invoice information follows the sales order information (Item quantity and sales amount).
Export and email invoices directly to the key person in charge of the account payable.
Courtesy call to inform payment made within the credit terms.
Automate and expedite your sales document generate process with MySoft ERP
Generate Invoice by picking up from the previously confirmed and agreed Sales Order’s information.
Invoice information follows the sales order information (Item quantity and sales amount).
Export and email invoice directly to the key person in charge of account payable
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5. Clearly state your terms and charge overdue interest
Ensure that you provide clear and easy to understand, prominently displaying your credit terms, actual payment date, and the acceptable payment methods and details to your customer. The simpler it is and the easier you make it for customers to pay you, the more likely it is that you will be paid within terms.
You should also ensure that your terms clearly state your tolerance policies on late payments and the action that can be taken if a late payment issue occurs. By demonstrating from the outset that your business doesn’t condone late payment, the chances of getting paid within terms will be improved considerably.
Easy interest amount calculates for the overdue invoice with MySoft ERP:
Displaying credit terms in the invoice.
Display payment methods and details and state your tolerance policies on late payments in the invoice.
Calculate the overdue interest amount to late-paying customers.
Clearly state your terms and calculate overdue interest easily with MySoft ERP
Displaying credit term in the invoice
Display payment methods and details and state your tolerance policies on late payments in the invoice.
Calculate the overdue interest amount to late payment customer
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6. Salesman commission based on receipt
Improve your cash flow by setting the salesman commission to be paid at receipt of payment from the customer. Motivate your salesman to involve in the entire process from sales to the collection, develop a long terms business relationship with the solid client rather than.
Encourage salesman involved whole sales process from initial to collection
Multiple salesman commission level setting and corresponding commission awards for sales target achieved.
Salesman commission calculate based on receipt
Improve your cash flow with MySoft ERP’s Salesman Commission Module
Multiple salesman commission level setting and corresponding commission awards for sales target achieved.
Salesman commission calculate based on receipt
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7. Update Due Report
Always keep your customer and supplier due report updated as it will provide you with a rough outline of the expected revenue coming as well as the funds needed to clear any debts.
Due report
Customer Due Report
Supplier Due Report
Customer and supplier due report
Customer Due Report
Supplier Due Report
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8. Achieve better credit control with MySoft ERP
MySoft ERP is a flexible solution designed easy-to-use with the user-friendly interface. With the 20 years of experience and continual-evolving, industry-specific ERP simplifies the complexity. MySoft ERP has redefined the business working process, it optimizing your operation and improve the bottom line by reducing accounts receivable write-offs and reducing operational costs.
Improve your business cash flow with MySoft ERP
