Online Great Plains Will Help To Determine the Credit Policy
In case you increase credit to your clients, you need to have a credit policy with the assistance of web based accounting software and online great plains. A credit policy sets, “guidelines which explain tips on how to choose customers are sold on available account, the exact payment terms and conditions, the limitations established on outstanding balances and how to deal with past due accounts.”
When times get tough, your customers may be enticed to pay your invoices. According to MY GP cloud, do not let them. When you allow your customers to violate your credit policy, many things can happen.
Once established, you need to stick to it. Having a credit policy that is not enforced is useless. Otherwise, you can get into troubles like agreeing to your customer’s weak payment overall performance may seem like it truly is strengthening your relationship with each other. It is not. Agreeing to very poor payment overall performance tends to pervert an otherwise excellent business relationship. Their bond could just continue to weaken. Once your customer knows that you will accept poor payment performance it will entice them to take further advantage of you.
Based on online great plains, an incorporated ERP system is necessary to remaining on top of your accounts receivable and even conducting your credit policy.
According to MY GP cloud, while it might appear counter-intuitive to believe that your client relationship may improve by not taking slow payments, it is not. I have seen it happen sometimes. Adhere to your credit policy.
These are few features of an integrated ERP system and online great plains, which helps you to enforce your credit policy and protect your business:
1. Ensure that sales of things in addition to services to your customers are appropriately recorded on a well-timed basis. Sales needs to be reported to reduce or to get rid of billing disagreements with your clients. Sales have to be documented on a regular basis to ensure payment terms based on document date can start as early 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 cautions to notify credit supervisors and others any time particular accounts are violating your credit policy to ensure that corrective measures can be taken instantly.
Sometimes your customers try to make their problems your problem. This is completely unacceptable, as you have enough to worry about and you do not need more problems.
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 from MY GP cloud that allows for time entry and flexible invoicing procedures can help you remain on top of your credit policy.
For additional information related to online ERP software, explore at: www.mygpcloud.com
Source For This Article – http://blog.mygpcloud.com/2012/07/define-your-credit-policy-and-stick-to-it
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