We all know that cash is king. Cash and access to capital gives you options to ride out tough markets, re-invest in the business, and provide excellent wages and benefits to your employees.
And, a ton of cash is sitting uncollected in your Accounts Receivable right now, just waiting for you to collect.
In this post I’ll share 10 Tips to Manage your Accounts Receivable so that you can improve cash flow in your beer business.
10 Tips to Manage your Accounts Receivable
- Know your customer: Use credit apps and new account forms.
- Manage your collection team: Set an AR policy for Admin.
- Automate customer payments: Use a company like Fintech for EFT payments
- Don’t get lost in the details: Most collections people do.
- Know who writes the check: Chains, and independents, in particular. Who you gonna call?
- Be a good business person: Always pleasant, and persistent. The goal is to collect the money and keep the customer.
- Use collection agencies: These can be effective if you act quickly.
- Measure and use scorecards: Days outstanding. (the math behind accounts receivable collections)
- Watch out for short pays and skipped invoices: Investigate why it was short paid, determine if it can be re-billed.
- Engage the sales and delivery teams: Create an SOP for cash flow success.
Watch the short video below: 10 Tips to Manage your Accounts Receivable
P.S. We have a self-directed online course on brewery cash flow management. Take the course and build a cash plan for your brewery. The course is included with your subscription to Craft Brewery Financial Training. As a special bonus, sign up this month and you’ll receive the Brewery Cash Flow White Paper.