Tips and tricks for overcoming the pandemic's economic impact
The COVID-19 pandemic has had a profound effect on businesses of all types and sizes, and among the areas that have been particularly impacted is accounts receivable. The economic downturn caused by the pandemic has made it difficult for companies to collect payments from customers, resulting in cash flow issues and financial stress. In this blog post, we will delve into how COVID-19 has affected accounts receivable, and explore strategies for addressing these challenges.
One of the most significant impacts of the pandemic on accounts receivable has been the economic downturn. With many businesses shutting down or operating at reduced capacity, many customers have been unable to pay their bills on time. This has resulted in an increase in overdue accounts and a decline in cash flow for businesses. For more information on the economic impact of COVID-19, read more here.
Another challenge businesses have faced is the shift to remote work. With employees working from home, it can be more challenging to track and manage accounts receivable, particularly for businesses that rely on manual processes or lack the necessary technology to support remote work. For more information on how remote work can impact accounts receivable, you can check out this article from Forbes.
To tackle these challenges, businesses must be proactive in managing their accounts receivable.
One solution is to implement automation and technology to streamline the process and improve efficiency. For instance, Invevo's utilises a workflow engine that enables you to configure any combination of workflow processes with automated communications to increase cash collection performance making it easier to manage incoming payments, even when employees are working remotely. For more information on automating your receivables, take a look at Invevo's What We Do page.
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Another strategy is to be flexible with payment terms. During these uncertain times, many customers may require extra time to pay their bills. By providing extended payment plans or other options, businesses can assist customers in staying on top of their bills while also ensuring that they receive the revenue they need to remain operational. For more information on the benefits of flexible payments, read here.
Lastly, it is essential to stay informed about the latest developments related to COVID-19 and its impact on the economy. By keeping up-to-date with the latest news and trends, businesses can better anticipate and respond to changes in the marketplace. You can do this by checking in with blogs (like this one! 👋 ) and stay on top of the latest information.
In conclusion, the COVID-19 pandemic has had a significant impact on accounts receivable for businesses. By implementing automation and technology, being flexible with payment terms, staying informed, and seeking out financing options, businesses can better adapt to these challenges and maintain a stable cash flow.
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