How do you control your collections and payments in your company?
Posted: Sun Dec 15, 2024 8:51 am
Depending on how we manage our company's treasury , we can have a solvent and efficient company, or a real ruin doomed to closure due to insolvency.
A company may sell a lot and have a high profit margin, but this does not necessarily mean that it has to have liquidity to meet its financial commitments.
Start of marked textTWEET IT! Get paid before you pay and ensure your company's liquidity. Learn how to manage your collections and payments efficiently to increase your business success.End of marked text
Since no two companies are identical, and depending on the sector and type of company there may be significant differences in the management of collections and payments, we can find two types of treasury management systems:
Complex systems.
Simpler systems.
Depending on each case, it will be more appropriate to apply one system or another. However, in all cases, policies and guidelines for managing collections and payments must be defined and the cash flows of our business activity must be analysed.
Regarding the documents received for treasury management, we can divide the collections and payments into two groups:
Management of collections and payments documented by invoice.
Management of collections and payments not documented in the invoice.
What is treasury management?
A company's treasury management involves optimizing liquidity in order to ensure the availability of the funds necessary to make the payments committed by the company in the appropriate currency and at the right time.
To ensure this availability, company treasurers must make the necessary arrangements to finance the company's operations when necessary.
Management of documented collections and canadian colleges universities email list payments by invoice
Collections and payments that are documented with an invoice can be easily controlled through our business management software .
Programs such as Sage XRT facilitate the management of collections and payments through forecasts . From these, accounting entries for collections and payments can be made directly, which facilitates treasury control and accounting management.
With this management system, we will know the due dates of our accounts receivable and payable . In addition, we will have our treasury management under control at all times, with a simple but very effective treasury management system.
It goes without saying that, in all companies, we must try to collect before paying. In this way we will optimize our treasury needs and save financial costs by financing ourselves with our suppliers.
A company may sell a lot and have a high profit margin, but this does not necessarily mean that it has to have liquidity to meet its financial commitments.
Start of marked textTWEET IT! Get paid before you pay and ensure your company's liquidity. Learn how to manage your collections and payments efficiently to increase your business success.End of marked text
Since no two companies are identical, and depending on the sector and type of company there may be significant differences in the management of collections and payments, we can find two types of treasury management systems:
Complex systems.
Simpler systems.
Depending on each case, it will be more appropriate to apply one system or another. However, in all cases, policies and guidelines for managing collections and payments must be defined and the cash flows of our business activity must be analysed.
Regarding the documents received for treasury management, we can divide the collections and payments into two groups:
Management of collections and payments documented by invoice.
Management of collections and payments not documented in the invoice.
What is treasury management?
A company's treasury management involves optimizing liquidity in order to ensure the availability of the funds necessary to make the payments committed by the company in the appropriate currency and at the right time.
To ensure this availability, company treasurers must make the necessary arrangements to finance the company's operations when necessary.
Management of documented collections and canadian colleges universities email list payments by invoice
Collections and payments that are documented with an invoice can be easily controlled through our business management software .
Programs such as Sage XRT facilitate the management of collections and payments through forecasts . From these, accounting entries for collections and payments can be made directly, which facilitates treasury control and accounting management.
With this management system, we will know the due dates of our accounts receivable and payable . In addition, we will have our treasury management under control at all times, with a simple but very effective treasury management system.
It goes without saying that, in all companies, we must try to collect before paying. In this way we will optimize our treasury needs and save financial costs by financing ourselves with our suppliers.