TEKOA software  TEKOA software  |  My Account  |  Help 


TEKOA software     TEKOA software

Improve Business Receivables with These Easy Steps 

Money is the lifeblood of a business. Without proper procedures, business can fall victim to theft or fraud, or even just mishandling on key assets. The major way that businesses acquire money is usually through sales. While some companies still operate in cash, the vast majority collects funds through accounts receivable. Even though every operation is different, there are definitely right and wrong ways to go about this process.

Terms of Sale

It is hard to make money if you aren't getting paid. A good way to make sure that your customers follow through with their payments is to keep payment terms short. If the terms get too long, it is easy for payers to put off payment or forget about the outstanding debt. Short payment terms also encourage people to only spend what they can actually afford. Another way to encourage fast payment is to offer a small discount for on time or early payments. Discounting an order two percent if paid in ten days is a popular and effective discount.

Make Wise Choices

It is also important to choose very carefully which customers or venders you do business with. You can easily do research or ask around about different potential customers or vendors. If one company has a reputation of defaulting or not paying on time, it might be worth your time to seek out another option. It can be hard to loose a customer, but if they aren't reliable when it comes to paying you, it will be better in the long run to not do business with them.

Fraud Prevention

While it is obviously important to make sure your customers are paying you, there are also internal procedures to make sure you are handling your payments the right way. No one wants to deal with a theft or have to accuse your own employees or fraud. A good way to avoid the whole uncomfortable situation is to instill some strong internal controls. Implementing a separation of duties within your office is a good way to prevent fraud and also keep better track of your money. 

A different person should be in charge of sending bills to customers than the person who receives the checks. It is a popular fraud scheme to send a bill to a customer, delete the record of the bill and pocket the payment. It is also possible to just take the payment and say that customer never paid. If two different people are doing these tasks, it is much harder to run this type of scheme. It is also better from an organization standpoint. If only one person has to keep track of all these records, they could very easily become confused or overwhelmed.

Keep Your Money Where Your Mouth Is 

There are countless things to think about everyday while running a business; how you handle your money doesn't have to be one of them. Choosing to have strong, easy to follow accounts receivable procedures and practices makes it that much easier to ensure that your business can grow and succeed. 

By: Cindy Tapia 

TEKOA ERP Software 

Web Portal Software

More Resources 

Sage 100 EDI Integration | TEKOA Integrator 
Three Principles of Healthy Inventory Management  
Cloud or On Prem ERP Making The Choice 
Good Accounting Procedures for Accounts Payable 
Mobile Point of Sale for Sage 100 

Midsize ERP Software

WMS Software

ERP for Manufacturing




Tekoa Software Twitter

Tekoa Software LinkedIn

Tekoa Software YouTube

Tekoa Software Facebook

Tekoa Products



Developers / Partners

Legacy Sage 100 Services

About Tekoa


 Contact Us


 Terms of Use


 Copyright Tekoa Software Inc.  All Rights Reserved