People go into business to sell either a product or a specialized service.<\/p>\n\n\n\n
What they don\u2019t do, is go into business to become debt collectors \u2013 unless, of course, they are in the business of debt collecting.<\/p>\n\n\n\n
Nobody enjoys the collecting part of business and most business people aren\u2019t necessarily good at it.<\/p>\n\n\n\n
But ignoring the problem will only make matters worse, especially if your business sector, or the overall economy, are experiencing a slowdown. Even a small change in the time it takes to collect your accounts receivable can have a significant impact on your cash flow.<\/p>\n\n\n\n
Beware of the customer who usually pays on time but for reasons unknown suddenly has to be hassled for money.<\/p>\n\n\n\n
If you\u2019re following up with the customer and still not getting paid, you might be faced with a client who is in financial difficulty.<\/p>\n\n\n\n
So avoid making matters worse by thinking \u2018oh, it\u2019s alright, they always pay us\u2019 and doing more work for them before they have paid the outstanding invoice.<\/p>\n\n\n\n
Statistics show that if a bill hasn\u2019t been paid within 150 days, the chances of it being paid at all are significantly reduced.<\/p>\n\n\n\n
When you have accounts receivable, you\u2019re actually financing your client\u2019s business although that aspect doesn\u2019t occur to many business owners.<\/p>\n\n\n\n
So what to do to ensure you get paid on time?<\/p>\n\n\n\n
Here are some tips on how best to collect on accounts receivable while still being nice about it.<\/p>\n\n\n\n
And finally, if you are doing work before receiving a penny from the customer or client, you are also likely paying interest on your own money \u2013 money that is financing the contract.<\/p>\n\n\n\n
So when it comes to accounts receivable, it makes sense to have a mutually understood \u2013 and agreed to \u2013 payment system in place.<\/p>\n","protected":false},"excerpt":{"rendered":"
People go into business to sell either a product or a specialized service. What they don\u2019t do, is go into business to become debt collectors \u2013 unless, of course, they are in the business of debt collecting. Nobody enjoys the collecting part of business and most business people aren\u2019t necessarily good at it. But ignoring<\/p>\n","protected":false},"author":25,"featured_media":4938,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[141,145,142],"tags":[222,221],"acf":[],"yoast_head":"\n