As incredible as it is to manage a creative agency, it not only involves so much more than guiding unique creative projects. Therefore, it's essential to keep improving your agency's accounts receivables process and stay on top of your creative agency's cash flow.

Improving your account receivables management is crucial for a successful creative agency. It brings benefits to marketing, sales, client service, and operations. So, let's dive in and discover how to optimise this critical business area!

The Importance of a Robust Account Receivable Strategy for Agency Management

Timely Invoicing: a Key to Efficient Cash Flow

Invoicing on time can dramatically improve your accounts receivable turnover; this can occur through timely billing. The earlier you bill, the earlier they can pay.

From our experience, scheduled billing can be a challenge for smaller agencies that do not have a full-time accounting department or bookkeeper. Still, there are ways you can improve your billing process:

• Bill more frequently instead of waiting until you need to tackle a more significant invoice

• Ensure the finance team is accurately recording time entries.

• Consistency is crucial - bill on the same day each month so that clients can have an expectation planned.

Building and Sustaining Client Relationships for Long-term Success

Satisfied clients may become long-term clients, valuable assets in your agency's revenue stream and timely cash flow. Therefore, consider implementing methods that may improve your client's experience, which may ensure clients become brand advocates. For instance, your company should conclude its obligations to customers in an effective and timely manner.

Ensuring Client Data Accuracy for Streamlined Agency Operations

Centralising the primary data process to ensure the accuracy of client accounts and the information is crucial to establishing and maintaining a compelling accounts receivable process. For example, valid addresses/emails can cause invoices to be sent/emailed to the wrong address, which results in late payments.

Audit your client accounts and check for anomalies. In addition, document each change applied to client data and put controls in place to prevent unauthorised people from being able to access or edit data.

Giving clients several ways to satisfy their invoices makes them more likely to pay you promptly. For instance, consider implementing payment by PayPal, credit card, or electronic funds transfer (ETF) options rather than limiting your payment options.

Often, a missed invoice is an honest mistake, and your clients will appreciate the reminder. However, in those awkward situations where a client is avoiding payment, you will reduce the hassle and haggling by providing detailed, accurate invoices and clear payment terms.

Pegasus Systems, your SaaS-Based Accounting System Solution

Using accounting software like Pegasus Edge allows agency leaders and your accounting team to access your financial data from anywhere. In addition, cloud-based software makes sending invoices and follow-up reminders via email easy.

The other beauty of SaaS-based software is that it will allow you to automate repetitive tasks and offer integration with other software programs. Pegasus Systems is a single source of truth; not only does our platform pack all the features you want as time and cost and job management, but it has other integrated functions which improve efficiencies, such as time entry. We also have production tools which include time and cost transactions, production invoices, order management and over 15 reporting tools just for the production team.

Our goal is to make Pegasus Edge the industry-leading tool which ultimately improves decision-making and allows agency financial professionals to analyse critical data when required to those who need it when the information is required.