Accounts Receivables

Overcoming common debt collection challenges for your small business

Every size business, whether a small business or a larger organization will have to manage late and non-paying customers. It’s just a reality of being in business and part of the accounts receivable process.

Not every customer is going to pay their bills on time. That would be nice, but it just doesn’t happen for a wide range of reasons. Some of those reasons are legitimate and other reasons will challenge you and your staff.

Keeping current with accounts receivables and maintaining cash flow are constant challenges of running any small business. That’s when a small business needs to decide to implement some form of debt collection activity.

Let’s examine the various challenges a small business faces with […]

2024-05-20T08:42:38-04:00May 20th, 2024|Categories: Accounts Receivables, Small Business Collections|

How consumers can have a positive experience with a debt collector

If you are a consumer, struggling with debt, you should know that not only can debt collectors help you navigate a challenging financial situation, but you can also have a positive experience and favorable outcome.

Gone are the days when collectors just got on the phone and demanded full payment. That’s not the way debt collections work. A professionally trained collector listens to consumers, seeks to understand unique situations, and creates an environment where two people can reach a solution.

If you’re looking for tips on turning a call from a collection agency into a positive experience, check out our advice here. […]

2024-05-13T09:03:50-04:00May 15th, 2024|Categories: Accounts Receivables, Advice for Consumers|

Understanding realities-why consumers struggle to pay on time

There are numerous legitimate reasons why a consumer might struggle to pay your business on time, or at all and many of them stem from financial difficulties.

As business owners, executives and others keeping an eye on the bottom line, you may get angry because some customers have not paid your business and you’re left wondering why.

However, as we indicate here, many circumstances limit a consumer’s ability to pay your business, and they should be considered.

If you want to better understand why some of your customers are not paying, take a look at our insight below. […]

Your business went to small claims court-Now what?

Many organizations and commonly small businesses will attempt to get customers to pay on outstanding invoices through various methods. However, for a wide range of reasons, small businesses can struggle to get timely payments, which ultimately affects cash flow.

One method that many small businesses have employed over the years is taking customers to small claims court. It’s relatively inexpensive to file a claim, and if you have paperwork to back up your claim, your business will often achieve a favorable judgment. That’s good news.

The bad news? A small claims judgment is just that, an order from the court for the client to pay your business. And for the most part, the authority ends there.

In short, […]

2024-03-12T10:52:57-04:00March 15th, 2024|Categories: Accounts Receivables, Collection, Small Business Collections|

Debt collections-your mission critical part of business cash flow

A healthy debt collection process helps businesses of all sizes maintain positive cash flow which is critical for many reasons.

Cash flow is the backbone of any size business and positive cash flow keeps a business healthy and strong. It allows for consistent operations, a healthy bottom line, meeting the needs of your workforce and the confidence to know that you have the resources to grow if needed.

Your business must have positive cash flow!

Let’s go through some of the obvious and not so obvious reasons why debt collections is an integral part of your organization’s cash flow. […]

2024-03-12T10:48:35-04:00March 13th, 2024|Categories: Accounts Receivables, Small Business Collections|

Time is Money-the true cost of in-house collections

If your organization is burdened with negative cash flow, your ability to keep customers current in their financial obligations becomes mission critical. Approaches to achieving that and getting customers to pay you regularly differ.

Many organizations still rely on in-house debt collection teams as part of their accounts receivable program. While in theory, this may have moderate benefits, relying on internal resources for all your collection activity may ultimately be a negative. The obvious is the cost associated with maintaining those resources internally.

We always advise organizations to conduct proper due diligence with late-paying customers, including regular communication and procedures for following up on late payments. But at some point, those efforts can become ineffective.

If you run […]

2024-03-09T10:23:53-05:00March 11th, 2024|Categories: Accounts Receivables, Advice for Businesses|

5 ways to keep your customer when they are NOT paying

You want to keep your hard-earned customers. We thought so!

Sometimes as you well know, customers do not pay. But that does not mean you have to lose that customer. In many cases, something has prevented your customer from paying on time or meeting their financial obligations to your business.

While there are obviously disputes that need to be worked out, sometimes a customer just needs a little time and assistance to get caught up with your business.

If you want to keep your customers in good times and difficult situations, check out our 5 tips for keeping them when they have not paid you yet.

Open the lines of communication

If your business is not getting paid by your […]

Here’s your accounts receivable checklist for the coming year

If your business is at a point where you know you can improve cash flow, there are many things that you can address internally that can advance your chances of better cash flow.

If you’re running a small business, you may be cleaning up your books anyway to hand them off to your CPA for tax season. So why not in the process, take a hard look at your accounts receivable process and make any necessary changes.

Here’s a checklist of must-haves to improve your internal accounts receivable processes for the New Year.

Keep up-to-date information on your customers

The management of your customer information is vital not only to your accounts receivables but also to other areas, such […]

2024-01-03T12:18:40-05:00January 9th, 2024|Categories: Accounts Receivables|

6 critical areas you need to focus on to build more trust with customers

The relationships you build with customers are the lifeblood of your organization, no matter the size. In short, your business will not thrive without solid relationships with customers. It’s just that simple.

Building lasting and trusting relationships with consumers is one of the best ways to see continual growth in your organization. You should not think of your customers as transactional. You should be thinking about how you can serve them for the long term.

Building long-lasting customer relationships is more than just being nice and smiling. It’s about implementing strategies that allow you to build trust over the long haul.

If you’re looking for traditional and non-traditional ways to build lasting customer relationships, check out our tips […]

8 proven ways to build your small business profits this coming year

If you’re like many owners and operators of small businesses, you’re looking at the year ahead and trying to figure out how next year can be better than before. While New Year’s resolutions might not work, getting the year off on the right track is time well spent for your small business.

From reviewing the processes and procedures your small business uses regularly, looking at cash flow, invoicing and how you use a debt collection agency, to just some basic goal setting, it’s important to review your small business goals annually.

If you are running a small business and are eager to boost your profits in the coming year, check out our tips for building your small […]

2024-01-03T09:27:09-05:00January 3rd, 2024|Categories: Accounts Receivables, Small Business Collections|
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