| > | | | | As I said be consistent. Check your aging reports daily. |
| Effective management of your company's accounts | | | | Even if you have someone responsible for doing the |
| receivables is crucial to maintaining positive cash flow | | | | actual collecting you need to be aware of their |
| for your business. Failure to manage your accounting | | | | progress or lack there of on a daily basis. Most people |
| properly could cost you everything! | | | | do not like doing collections and consequently they |
| All companies that are in the position of billing their | | | | may end up neglecting it. Treat your accounts |
| customers and waiting to be paid have a similar | | | | receivable as a use it or lose it asset, because that is |
| problem. Making sure their customers pay the bill. And | | | | exactly what it is. |
| sometimes getting them to pay the bill can be harder | | | | Accounts receivables do not improve with age. As |
| than getting the job done for them was. On top of | | | | soon as an account approach's or exceeds the terms |
| everything else you need to balance the objective of | | | | agreed on they need to be contacted. And if at first |
| getting paid with maintaining your customer | | | | you don't succeed in reaching them try again. Every |
| relationships. | | | | day if necessary until you reach them. Once you get a |
| Accounts receivable are money owed to your | | | | hold of them be cordial and explain the situation. You'll |
| company by other companies who have purchased | | | | often find that the person on the other end of the |
| goods or services from you on credit. Realistically | | | | phone doesn't know anything about your bill because it |
| maintaining low accounts receivable is a difficult task, | | | | was never submitted. So ripping off their head over |
| and yet plays such a vital role in the overall success of | | | | the phone will do you no good and only cause that |
| your company. And successfully managing your | | | | person to be unwilling to help you. |
| receivables can be a great boon to your company | | | | When dealing with delinquent accounts you need allies |
| while the reverse will probably be true if you neglect | | | | not enemies. Just make sure to document everything. |
| them. | | | | Contact names, phone numbers, contact dates and |
| There is a great deal to know about collecting overdue | | | | times. Past due bills and who the bill was originally |
| accounts. And there really is no right or wrong way to | | | | issued to. Everything that might help collecting on a bill |
| go about it. Because regardless of how big or small | | | | now or in the future needs to be kept. Put together a |
| your organization may be there is one factor that is | | | | comprehensive file on the accounting practices of |
| more important than anything else you might hear. | | | | each company you do business with. You do not want |
| Consistency is number one. Because if your not | | | | to have to duplicate your work later on another bill. |
| consistent then the money won't always flow in | | | | When done well, accounts receivable management |
| regularly. | | | | can make a big difference for any business. |
| Many factors go into people paying their bills late. For | | | | Experience shows that the likelihood of collecting |
| one they might not have the money at the moment. | | | | receivables decreases the older they get. A good |
| But other things that are legitimate do happen. One | | | | way to improve cash flow is to make the entire |
| common cause is the department you do work for | | | | company aware of the importance of accounts |
| does not turn the bill into accounting. Bills often get | | | | receivable, and to make collections. Having your sales |
| misplaced which does sound like my dog ate my | | | | staff informed on the status of an account can help |
| homework but it's true. | | | | as that account is their meal ticket. It behooves them |
| Often accounting departments have their own system | | | | to help collect a bill if their able. Once you've developed |
| that prioritizes who gets paid first. And some make it a | | | | your receivable collecting practices stick with them. |
| standard practice to pay the little guy late. Because | | | | For most companies, collecting accounts receivable is |
| they think you need them more than they need you. | | | | the largest single headache. No one really likes to do it. |
| Larger companies can in many cases be very hard to | | | | But past due accounts receivables can be one of the |
| deal with and if you do business with them regularly | | | | most damaging drains on your cash flow. And the |
| that has to be considered. It's not about asking them to | | | | further you get behind the more you compound the |
| pay you just how you go about doing it. Fortunately, | | | | problem. If you haven't already then it's time to develop |
| there are some things you can do that can make | | | | a sound process to track and collect accounts |
| managing accounts receivable effective, although still | | | | receivable. The life of your business may depend on it. |
| not easy or always pleasant. | | | | |