Switching to a new accounts receivable management solution is simpler than expected if approached correctly. This article offers practical insights to ensure a smooth transition without disrupting business processes.

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Switching to online accounts receivable management – ​​How to easily make the transition to more control over your accounts receivable

Switching to a new accounts receivable management solution is simpler than expected if approached correctly. This article offers practical insights to ensure a smooth transition without disrupting business processes.

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Many entrepreneurs switch to a new financial management environment when they are confronted with shortcomings in their current solution. Perhaps your current software or administrative approach no longer meets the growing demands around cash flow control, accounts receivable management and insight into outstanding items. It is often the case that financial overview is not only about the possibility of invoicing or processing receipts, but also about keeping control of incoming payments, outstanding items and minimizing the risks of non-payment.

It is precisely this last point—the control and limitation of payment risks for accounts receivable—that makes entrepreneurs look for alternatives that not only facilitate bookkeeping, but also support better accounts receivable management. A careful choice in switching will ultimately save you a lot of stress, time and, crucially: financial losses.

When should you send your payment reminder?

By law, the standard payment term is 30 days, unless otherwise agreed. Many companies use shorter terms, such as 14 days. A common approach for sending payment reminders is:

Day after due date – first friendly reminder

It is important to send a first payment reminder when the payment term has expired. This reminder should be sent by email, stating the outstanding amount and proposing a new payment term. Make sure that the payment reminder is sent in a way that is appropriate to the customer's situation.

7 days later – second reminder

14 days later – final reminder, possibly with a reminder

This gives the customer enough time, but you remain businesslike.

Key points to consider when making the transition to better financial management

Every transition requires preparation and attention to a few critical components. Therefore, pay particular attention to the following aspects when making your transition:

1. Balance transfer debtors and creditors.

When entering an opening balance, there are two ways to have debtors and creditors balances correctly in order:

  • Enter one total amount and keep your own data processing outside the system.
  • Or add historical debtors and creditors invoices retroactively, so that a correct automated balance calculation follows.

Always ensure that this transition is implemented correctly, as deviations can have a direct impact on your insight and reporting.

2. Correct processing of historical data.

Reliably taking along previous invoices and payment details prevents a lot of discussion or double work afterwards. Many programs offer practical import options for this (CSV file or vCards), with which you can easily work completely and directly from the switch.

3. Implement a clear accounts receivable process.

A switch offers the perfect opportunity to critically evaluate your existing accounts receivable processes and renew them where necessary. Ensure clear payment conditions, clear communication about overdue payments and efficient follow-up of outstanding items.

The options for late payments: from reminders to legal follow-up steps

Your switch to a more professional financial management system enables you to respond more powerfully and clearly to payment arrears. The following steps will help you do this effectively and carefully:

  • Friendly payment reminder within a few days after expiry of the term.
  • Legally correct reminders including formal payment terms and necessary information.
  • Reminder letters with the so-called fourteen-day term, including an appointment of consequences and possible collection costs (in accordance with the Debt Collection Costs Act).
  • If payment is still pending continues to fail: structure and automate the collection process so that fast and legally sustainable actions become possible.

By taking these measures seriously and applying them consistently, you can demonstrably get paid faster. Please note: ensure that these processes are implemented legally correctly to avoid unpleasant discussions afterwards.

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Specialized support offers your company significant advantages.

In addition to pure software support for accounting and invoicing, joining specialized parties that help with sound accounts receivable management is the most effective way to significantly limit your business risks. Such parties offer processes that strengthen your cash flow and keep your balance sheet clean and reliable through effective follow-up of overdue payments. The result of greatly improved financial management and well-supported processes is clearly visible in practical experience: companies that rely on such specialized services allow fewer losses due to non-payment, minimize unexpected liquidity problems and directly contribute to a stronger financial health of their company. In addition, efficient accounts receivable measures are not only cost-saving, but also ensure considerable time savings.

The key to lasting financial insight and control over your accounts receivable management

The transition to a new financial management solution requires care, but if you undertake this process well prepared, the benefits are great. In addition to operational benefits, such as faster and better administration, more effective debtor management in particular offers great strategic added value for your company. It is precisely in this area that a well-prepared transition makes a significant difference.

For entrepreneurs who want financial health, you therefore do not just choose a new accounting program, but one in which professional and digitally supported debtor management is central. This transition offers your company a powerful opportunity to secure a healthy, sustainable financial future, with fewer risks and clearly improved liquidity as a result.

Start with Credit-IQ today

With Credit-IQ you can say goodbye to endless spreadsheets. You automate every step of your accounts receivable management: from sending reminders to optimizing them. Our clear dashboards help you accurately predict cash flow, resulting in better liquidity. Try Credit-IQ  for free!