Tips for Timely Collections

Most of us would rather buy a new car or go to the dentist than deal with overdue collections. Although we are numbers-oriented, we fall flat when it comes to taking the initiative to collect what's due.

The trick is to act fast. For example, if a receivable is just one day overdue, call immediately to find out if something went wrong. There may be a very good reason, or the sender may indeed be tardy for no good reason.

Still, acting quickly will jog the sender's memory and should help with collections. If the sender says the check is "in the mail," we all know that's usually a red flag.

Wait a few days, then send a letter stating what's due along with a description of the products or services you or your firm/business performed, and ask for immediate payment.

Other tips include alloting time each day for collections and even assigning a staff person to this task.

You may like these other stories...

Remember the old joke about the devil showing a guy around Hell? There were great parties, swimming pools, and sumptuous food. The guy liked what he saw, lived a bad life and went to Hell when he died. Upon arrival the devil...
Due to fierce competition in the accounting industry, some CPAs may feel pressure to compete for business using pricing alone. However, this is a losing battle in the long run: Competing on price will lead to the need for...
If the thought of blogging makes you as nervous as an executive facing an IRS audit, stop worrying. You can overcome your challenges with these tips.1. Blogging is good for business. You'll benefit as your blog displays...

Already a member? log in here.

Upcoming CPE Webinars

Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.