Are You Watching Your Receivables?

On August 25th, 2011, posted in: Accounting by 0 Comment

In tough economic times, keeping a close eye on your receivables is vital. If your clients or customers run into difficulties, you may find your business not being paid.

Consider these practices:

  • Set a credit limit for your clients or customers.
  • Send a statement as soon as an invoice is past due.
  • Call when a statement isn’t responded to within 15 days.
  • Offer a discount for prompt payment of invoices.
  • Get a retainer if you are starting a big project for a new client.
  • Do increment invoicing rather than at project completion.
  • Set up a payment plan if a client is having cash flow issues.
  • Terminate clients if continued promises of payment aren’t kept.

Our accounting associates are always happy to send statements or make calls on our clients’ behalf, upon request.

 

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