Account management is an activity that controls the financial part of the company. The key account management plan is to record information regarding your company’s inflow and outflow. The key account management plan makes it possible to identify and guarantee the quality of the financial health of your business.
In this article, we will introduce you to the main actions that must be taken to have efficient account management in your business.
What is account management?
Accountmanagement is a process that controls accounts payable and receivable. Its objective is to manage the bills and contracts that the company must pay. Account management takes into account both the financial commitments as well as collections and cash inflows. In financial balance, the accounts paid and receipts must up to date.
Bills to pay-In this process, in the accounts payable area, both fixed and emergency expenses are considered.
Bills to receive- accounts payable is also managing customer collections and accounts receivable. This means that there must be a forecast of revenue according to the sales made.
Why Your Business Needs Account Management
Account management is responsible for predicting everything about your business’s financial health for examplewhether your chances to spend less, or earn more in the future, and so on. Therefore, for this documentation and recordingof everything is needed. For this, the online account management software is the best that makes it possible to have a clear idea of the finances of the company.
So, for budget management, cash formation, and investments in the business online account management tools are the best solutions.
How to make an efficient key account management plan?
An efficient account management plan is essential to map the flow of your process. Knowing the interfaces and production routines makes the process happen in a fluid and intelligent way. Here are some practices for optimizing the quality of your account management.
Do you have control of the receipts (revenues) and exits ( payments ) of your business? In the past, it was common to record these notes on paper. However, we know that takes up physical space and also sometimes makes the calculation false. So, To avoid losing your documents, the best way is to digitally control your invoices. And to avoid data loss and allow mobility, save and upload the files in cloud folders.
Avoid mixing up spending categories
Try to prevent mixing personal accounts with company accounts. Everything related to your personal expenses must be outside the company’s calculation. The ideal way is that you have a “salary”, that is, every month direct a certain amount to your personal account to prevent your business from bankrupt.
Use online account management software
Account management is a fundamental part of running the business by analyzing the amounts receivable and payable. It is recommended to use business management software to easily and affordably check the amounts payable and receivable in real-time. Through online account management, your debts are organized by date, price, and categories, and you’ll even get help from the support team, whenever necessary. Online account management brings more autonomy to users and enhances the accuracy of the information generated.
Make a business plan
The business plan is the document that will guide your actions for the development of your company. Through the online account management process, you have complete planning and contemplation for defining the goals of the future. This goal must be achieved for the growth of the business. Otherwise, it’s impossible to map the impact of each process on your company’s performance.
How to have good account management?
Having good account management must be a priority for all who want to stay last in the market. It’s harmful if account management is only in the hands of the business owner. Because there must be a clear separation between personal and corporate finance. Here are some simple steps to have good accounts management are:
- Arrange Centralize accounting and finance team
- Define a process for purchases before approval
- Design processes for bill system
- record and document all expenses incurred by the company
- Automate accounts management in financial software
- Made proper reports on payments, accounts receivable, etc
- Automate bad debt collection
How to automate?
The software can help your team to have good management. The online platform offers several online payment methods for your company. They offer subscription plans.
According to your demand and requirement, choose your subscription program. And automate your management process. This will make the management of accounts receivable much easier, and it also saving your time and remove the burden of manual work, and making information more secure and automated.
Why rely on good tools?
Accounts management through good tools optimizes the quality of any process. Good tools are important to ensure the fluidity of production routines. If you have technological tools it will reduce employee costs in operational actions and direct the team to more strategic functions.
What are accounts payable?
Accounts Payable is Controlling all of the cash outflows of the company.
What are accounts payable?
The accounts receivable is to monitor all the cash flow of any company and have a complete view of the company’s financial health.
How to control accounts payable and receivable?
The accounts payable and receivable are control through effective strategy, planning, and implementation of management controls software. This provides a system for generating information about the business automatically. They’re the two types of controls required for business finances.
- Bills to pay
- Bills to receive
What is a Key Account?
The key account means representing a set of essential customers for the company who stays with you for a long period.
What is Key account seller?
A key account seller is one who works as a key account manager whose work is to interacts with the customer and seek their intentions.