Search
 
Best Practices

How to Build Solid Cash Flow Relationships

An approachable collections function is equivalent to money in the bank. Incorporating sales best practices into collections can significantly shorten the order-to-cash cycle.

By Jeffrey Gillis | Updated on June 23, 2015
Early in my career as a controller for a small, privately held company, the owner of the business ingrained in me the saying “It’s not a sale until the money is in the bank.” Getting paid is the final step of the sales process, so why shouldn’t finance borrow some basic sales tactics in order to ensure invoices are paid in a timely manner?

Sales organizations are always looking to close the next deal, book the next sale, or open a new account. How? By building relationships, establishing knowledge of each customer’s needs, and determining how the company can best provide for its customer. From a finance perspective, collections staff can adopt many of the same sales principles in developing a rapport with their counterpart in the client company. Here are some basic guidelines to building a more “approachable” approach to collecting customer payments.

Identify points of contact at customer companies.  Your company’s main points of contact are the individuals at each customer organization who can process, approve for payment, and pay invoices received from your company. It’s important to understand the role that each of these people plays within the customer organization, and to keep their contact information up to date in your accounting system.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Inventory, Reimagined

Inventory, Reimagined

Amit Goel |

How companies should be determining their ideal inventory level in the current economic climate.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.