Advertising companies commonly find that "orders are easy, collection is hard": the materials are delivered, but payment drags on for months. The essence of accounts receivable is cash flow tied up by customers, and if managed poorly, even a large number of orders can drag the company down. The following 3 methods should be put in place as early as possible.
Specify clearly in the quotation or contract Payment milestones (advance payment ratio, final payment terms), overdue clauses and invoicing timing For large orders, insist on advance payment plus settlement before shipment; long-standing customers may be given a credit line, but it must be capped.
Delivery notes, installation acceptance forms and electronic confirmation records must all be Keep signed records Many disputes arise from "the customer says it never arrived / there is a problem"; complete records give you the basis to press for payment and defend your rights.
Set up an accounts receivable ledger and manage by Classify by account age (30/60/90 days) reminders before due dates, proactive reconciliation once overdue, and suspension of service plus escalated collection for long-outstanding customers. Spending a fixed amount of time each week on follow-up is far more effective than a push at month end.
Additional reminder: Tie invoicing to payment collection, avoiding the passive situation of "invoices issued but payment not received"; write off bad debts centrally at year end to keep the statements accurate.
Standardized order and settlement management can also be handled through the platform system. JINTU® Enterprise Services provides partner stores with an order settlement system and business coaching. Feel free toLearn about franchise support.