Deciding when to collect on overdue accounts is as important as deciding how to keep track of overdue accounts and how to organize the accounts receivable process.
When is it right for your business to collect on accounts due? One day, one week or one month after the account is due?
When figuring out a procedure take some time to consider these factors:
What is your relationship with this customer? It’s unlikely that you will want to set out collecting on an account a day after it’s due if it is a family member or an extremely good customer who has an otherwise good history of paying the account.
How much money is due? If the balance is large and you’re depending on it to pay your own bills, you may very well decide to collect after a very short period of time. If it’s a smaller balance, it may be worthwhile to wait a bit.
If you would like more assistance, please contact us.
We’re here to help.