As part of your daily operations, it is quite normal that over time you will accumulate some accounts receivable. Whether your contracts provide for payment within thirty (30) days or you simply tolerated a promise of future payment by a loyal customer, these can pile up and become a burden for your business. Bf-Perception offers you some tips to avoid or solve this kind of problem. Obviously, a good contract always helps in this type of situation.
The first thing to do is to manage your invoicing more strictly. For example, it is a good practice to send invoices to your costumers periodically, even when the amounts may be relatively low, rather than waiting until the end of the project when the amount billed is greater. The client will then be able to see and understand the progress of his costs and there won’t be a surprise at the end. On your side, if you encounter late payments for the early invoices, you can reassess the situation with the client and avoid working for nothing. It is also recommended to send reminders in an almost automatic manner when accounts receivable are not paid. Thus, you will avoid an accumulation of delays and the frustration resulting from the inaction of your client.
In all cases, and this advice applies to all aspects of your business, do not push back deadlines and save for later less interesting tasks. You wait until the end of the month to prepare and send invoices? Do it as soon as the work is done. You are starting to see a customer’s outstanding account accumulate? Do not wait for the situation to resolve itself, call your debtor quickly.
If despite these tips and your best efforts to avoid having accounts receivable accumulate, you fail to keep them under control, you will be left to choose between a collection agency and a lawyer specializing in debt collection.
