Organize Customer Follow-ups

The follow-up of clients should take place before the payment deadline. It is important to verify that the entire process is proceeding normally: has the client received the goods? Has the purchasing department given the go-ahead for payment? Is the accounts payable department preparing the payment?

1. Objectives of client follow-up

  • Quickly collect bills if you discount your clients' bills (a minimum of 10 days before the deadline is necessary for the discount);
  • Avoid payment delays;
  • Prevent defaults;
  • Deal with any disputes promptly: this will give a good image of your company.

2. How to implement a follow-up policy?

  • Appoint a responsible person for this mission: They will regularly call the clients' accounts payable department to review pending payments;
  • Establish a telephone and written follow-up policy.

Telephone follow-up: to be carried out at regular intervals in conjunction with written follow-up, without harassing the client;

Written follow-up: every 2 weeks from the invoice date (using management and accounting software).

  • Involve the sales team in monitoring any payment delays. Do not hesitate to ask a salesperson to visit the concerned client and bring back the payment (check or accepted bill).
  • Closely examine the invoice preparation process. Minimize it after the delivery of the service or goods; consider reviewing the internal process if necessary.

3. The cost of follow-up

Follow-up has a cost for the company, which includes:

  • Training and informing salespeople and various collaborators;
  • Training the collaborator responsible for the follow-up mission;
  • Possibly revising the organization of the order-taking and invoicing process.

However, this cost will be quickly offset by the acceleration of cash flows, the reduction of payment delays, and the reduction of financial expenses.

4. Understanding the client's accounting organization

In large companies, the accounts payable department is often located at the headquarters, while the delivery of goods and services is done at various factories or locations of the firm.
Thus, your company may deliver to one address and invoice to another!
This does not facilitate the speed of payments. Indeed, it is necessary for the goods to be received at the delivery address by the purchasing or procurement department so that it can issue an approval to pay, which will finally be transmitted to the accounts payable department for invoice payment.
In the best-case scenario, the operation can take 2 to 3 weeks!