What's the first step in improving accounts receivable?

Begin with an assessment of your current processes, metrics, and pain points to identify the most impactful areas for improvement. This evaluation should examine payment processing, staff productivity, technology utilization, and customer payment behavior. Start by analyzing key metrics like Days Sales Outstanding (DSO), reviewing current workflow bottlenecks, and gathering feedback from both team members and customers. This strategy ensures your improvement initiatives target the areas that will deliver the greatest value to your organization.

How can we ensure customer satisfaction while improving collections?

Focus on creating clear communication channels, offering convenient payment options, and maintaining professional, respectful collection practices that preserve customer relationships. Implement a customer-centric approach that balances collections with positive experiences. This includes providing self-service options for account management, offering flexible payment terms when appropriate, and ensuring all customer interactions remain professional and solution-oriented. Remember that satisfied customers typically pay faster and maintain longer-term business relationships.