It is hard enough to foresee payment snags when running a business. But, every once in a while, life throws you a curveball that your normal systems can’t catch.
No matter how good your systems are, it is still essential to know when to skip the policies and work with a customer directly if they are in a dire situation.
Setting up a payment tracking system can help ease the stress of figuring out when to make those exceptions. Read on to learn how to set up a system that accounts for sales, late payments, and more!
What Data Needs to Be Tracked
The first step in setting up a payment tracking system is to decide what data needs to be. This information will be used for transaction tracking made to vendors, contractors, and other service providers.
This data includes the date of the payments, the amount of the payments, the account that the payments were made from, the account that the payments were made to, and any other relevant details. This information needs to be easily accessible so that it can be used to track payments and ensure that they are being made on time
Establish a System for Categorizing and Organizing Payments
When it comes to categorizing and organizing payments, there are a few different ways that you can do this. This will make it easier to track payments and see patterns over time.
One way is to set up a system where you have a specific place for each type of payment. For example, you can have a section for bills or online invoices, a section for savings, and a section for investments. This way, you always know where your money is going and it is easy to find what you are looking for.
Another way is to set up a system where you have a specific day for each type of payment or use spend management software to automate it for you. This way, you always know when you need to have the money available and it is easy to stay on track.
Set up a System for Alerts and Reminders
Setting up a system of alerts and reminders can help make sure you don’t miss a payment. One way to set it up is to create a spreadsheet with all of the relevant information. Include columns for the date of the payment, the amount due, the method of payment, and the date the payment got received.
Payment Tracking Can Help Your Business Stay on Track
If you want to save time and money tracking payments, set up a payment tracking system. You can use a simple spreadsheet, software, or online service to track payments. Doing this will help you keep tabs on who has paid and who hasn’t, so you can quickly follow up with customers who haven’t made a payment.
Explore our other business articles and blog. You’ll find tons of helpful ideas to get your small business on track.