The Race is On
…To Keep Your Accounts Receivable In The Black
It’s a simple fact of business that collecting business debt is no fun. In fact, accounts receivable is one of the most challenging – and important – elements of running a successful business. Your company cannot generate profit without first receiving payment. Until that payment is collected, any profits are merely theoretical. The role that the timely payment of accounts receivable plays in the success of your business cannot be overstated.
Even when a business has implemented a thoughtful plan, the accounts receivable process can be daunting. The process by which payment is actively sought can be unwieldy and awkward; it is often easier to ignore than to implement. However, not giving your collections process the attention it warrants does nothing to bring your accounts current – the name of the accounts receivable game. The fact is that the longer an account goes unpaid, the less likely it becomes that the account will ever be paid. As an account ages, it nudges ever closer to falling off your balance sheet as an item on your bad debt expense line. When it comes to accounts receivable, time is definitely not on your side.
It’s important that everyone in your company is fully attuned to the extremely important concept that no sale is ever complete until payment has been made in full – and the sooner the better. With this in mind, you should take pains to ensure that you have a dedicated, reliable, and practicable collection policy in place. That’s obviously a tall order, but it’s also a worthy pursuit.
There are several valuable methods you can courteously employ in an effort to keep your accounts receivable in the black:
- Bill your customers promptly and accurately;
- Expend the time and energy necessary to create effective policies, collection letters, and phone scripts for your employees to rely upon; and
- Know when to call it quits – the time may come when your collection efforts begin to reap diminishing returns.
Call 800-223-6259 today for more information.
Your customers are, of course, your company’s most valuable asset, and even when it comes to payment collection, they must always be afforded the respect they deserve. You are not in the business of alienating customers, after all. Because there are many variables involved – including legalities – this can be a tricky path for many businesses to navigate. There’s a lot to consider, but companies like CMCS are in the business of helping companies like yours maximize income by minimizing accounts receivable. CMCS has over three decades of experience in helping businesses achieve a healthier bottom line through expedited payment collections. For more information, contact a CMCS expert at 800-223-6259.