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In case you extend credit to your consumers, you must have a credit policy with the assistance of web based accounting software and online great plains. A credit policy sets, “guidelines that will explain how you can choose customers are sold on open account, the precise transaction conditions, the restrictions set on outstanding balances and ways to deal with outstanding accounts.” When times get tough, your customers may be enticed to pay your invoices. According to MY GP cloud, do not let them. When you allow your customers to violate your credit policy, many things can happen. Once established, you need to stick to it. Having a credit policy that is not enforced is useless. Otherwise, you can get into troubles like agreeing to your customer’s weak payment overall performance may seem like it truly is strengthening your relationship with each other. It is not. Agreeing to very poor payment overall performance tends to pervert an otherwise excellent business relationship. Their bond could just continue to weaken. Once your customer knows that you will accept poor payment performance it will entice them to take further advantage of you. In accordance with online great plains, a built-in ERP set up is vital to staying on top of your accounts receivable and undertaking your credit policy. According to MY GP cloud, while it might appear counter-intuitive to believe that your client relationship may improve by not taking slow payments, it is not. I have seen it happen sometimes. Adhere to your credit policy. These are few features of an integrated ERP system and online great plains, which helps you to enforce your credit policy and protect your business: 1. Make sure sales of products in addition to solutions to your consumers are precisely documented on a well-timed basis. A sale has to be accurately recorded to cut back or to get rid of billing disagreements with your customers. Product sales have to be recorded on time basis in order that payment terms based on document date can begin as early as possible. 2. Provide a continuously updated listing of accounts outstanding so that credit managers and others are fully informed about the business’s investment in accounts receivable. 3. Provide business alerts to inform credit operators and others the moment specific accounts are breaking your credit policy making sure that corrective measures can be taken promptly. Sometimes your customers try to make their problems your problem. This is completely unacceptable, as you have enough to worry about and you do not need more problems. The professional services industry has significant challenges in these areas. Often time, businesses in this industry invoice their customers for time spent by their employees to deliver services for their customers. Getting employees to record time on a timely basis and having the time properly reviewed and approved can be problematic. Then getting all the recorded time priced properly and included on customers’ invoices can be a long and tortuous process. An incorporated ERP system and web based accounting software from MY GP cloud which allows for time entry and flexible invoicing systems can assist you adhere to top of your credit policy. For additional information concerning online ERP software, check out at: MY GP cloud Resource For This Article - http://blog.mygpcloud.com/2012/07/define-your-credit-policy-and-stick-to-it
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