Small Business Solution: Hire a Debt Arbitrator
Small businesses like CPA firms and other companies are famous for being negligent in collecting on past due accounts. Some past due receipts often go 30, 60 or even 90 days.
One solution for clients and companies alike is to hire a debt arbitrator - a person who can negotiate settlements based on experience and pay incentives. The process is similar to any other mediation service, but with a specialty or business acumen built in to the person who serves as the arbitrator.
A debt arbitrator works on a percentage of any outstanding balances collected; therefore, there is a motivation factor linked to his or her success. Unlike attorneys who often are contacted to serve as collection agencies, debt arbitrators come to the table with years of experience under their belts.
Small businesses also benefit from more immediate cash flow rather than wait for something to be settled in court. For more information, contact the International Association of Business Mediation Consultants or call (800) 549-2128.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.