STREAMLINE YOUR ACCOUNTS RECEIVABLE

1. Contact the customers who owe you money. Many small businesses feel uneasy about asking their best customers for overdue payments as they fear being pushy might send the customer elsewhere. If a client is routinely late with payments, it makes sense to call them and ask why. It may be due to a misprinted payment date on their invoice, financial issues, or even customer disputes. Whatever the reason, the only way this problem can be resolved is by first discovering the issue. 2. Develop a firm but fair collection policy. Customers need to know you will consistently follow up on overdue bills. This is where good accounting systems are essential because they let you quickly generate overdue payment reports or flag them automatically for your immediate attention. 3. Offer alternative payment options, such as credit-card or electronic payments, that can often help you collect faster.