How do you manage accounts receivable efficiently?

I've found that a lot of the time it's not the chasing that's the problem, it's the sales team not setting clear payment terms with customers from the start.

We've been using a pretty simple system where we offer a small discount for early payment, it's been a big help in getting our invoices paid on time. Our finance team also makes sure to send out regular reminders, not just when an invoice is overdue, but a few days before it's due as well. This way we can catch any issues before they become a problem and our customers appreciate the heads up, it's really helped to reduce our outstanding invoices.

Honestly, I made a mistake by not having a clear credit check process in place for new customers, which led to a few bad debts that took ages to resolve. Now we're using a cloud-based accounting system that flags up potential issues with customers' payment histories, so we can adjust our credit terms accordingly. It's still a work in progress, but I'm hoping it'll help us avoid some of the headaches we've had in the past with late payments.