The best accounts payable practices for a business is the one that allows its customers to pay their invoices in a timely manner. There are some businesses that have experienced great success by adhering to this practice. There are others that experience very little success because they do not follow best practices. This can be determined by how well the business was able to keep its customers happy and how well it was able to collect payment from those customers. It is important to establish the best practices for your business in order to encourage good client relationships and to ensure that the money that is owed to customers is collected in a prompt manner.
The best practices for an account will include everything that relates to the collection of invoices. You need to be sure that you are following all of the applicable laws so that your customers are aware of what their rights are as far as when they should pay invoices. It is also essential to establish best practices for collecting payment from customers to ensure that you are not being accused of harassment when it comes to making payments on accounts. This can be a very expensive thing to defend yourself from so it is important that you make every effort to avoid being sued by your customers. If you can show them that you follow best practices, you will find that more than 90 percent of all businesses that deal with invoice collections will stop doing business with your business.
It may take some time to find the best practices for your company and to understand the process completely. You will have to dedicate some time to doing research on the subject and you may want to get some professional advice. If you cannot afford to invest in continuing education courses, then it may be in your best interest to start out by reading through some books about invoice collection practices and to start out small. Once you understand what the best practices are for your business, you can move on to hiring additional people to help you enforce best practices. This will allow you to increase your ability to collect money from customers and to protect yourself against being sued.
