How to rejuvenate your aging balance?
How to rejuvenate your aging balance?
The aging balance shows Accounts Receivable split by due date (generally in 30-days buckets). It allows to know the amount of the total outstanding due and the amount of outstanding payment in each tranche.
What are the secrets of a lasting face lift in 5 steps?
First step: Secure not due invoices.
This step is often neglected: a preventive approach is part of a plan to anticipate the aging of invoices and to discover issues or disputes that could generate customer dissatisfaction.
Second step: Focus on delays of +30 days. It is from this stage that the rejuvenation treatment must begin: Unless there is a creditworthiness problem, an old receivable often masks a dispute or an administrative issue that is not clearly identified: it is therefore necessary to integrate the Customer Care Center and / or Sales managers in the process of resolution as soon as the dispute is "unmasked".
Third step: Jump more marked in time with a zoom on the delays at +90 d In this way, gripping the slices of delays allows a much more in-depth curative action to be carried out. This parallel work will have the effect of cleaning up a situation on a larger base.
Fourth step: Track everything that is done to perpetuate and monitor actions. Tracking the status of each overdue invoice enables action to be taken to stop, understand or fix the root cause of non-payment. As explained previously, to carry out this rejuvenation with the greatest possible success, it is advisable to practice the vice method, that is to say to continue in parallel the actions of recovery before maturity and actively deal with old overdue.
Fifth step: Set up anti-aging recovery scenarios. Take care not to have recovery scenarios with too long a spread of stages over time. Remember that your customers already benefit from a credit in 99% of cases, so it is not necessary to tacitly accept an additional delay in a too tolerant space-time.
Can I manage the rejuvenation of my aging balance overall, by client, by agency, by cash collector, by entity, etc?
The answer is YES
My DSO Manager brings you online, in real time, your aging balance with details by customer to carry out targeted actions.
My DSO Manager allows you to filter your balance on the desired bucket, to zoom on sensitive sectors, to coach your team.
My DSO Manager allows you to qualify your items to track their evolution until payment is completed.
My DSO Manager allows you to refine your collection strategy to stagger your different stages and manage your customer contacts before the due dates.
Do not wait any longer to rejuvenate your aging balance, an essential lever to improve your working capital performance and therefore your cash.