Collection of Your Accounts Receivable

By Joan M. Quade Spring 2009 In Brief Newsletter In these tough economic times, companies find that payments on their accounts receivable are delayed and diminished.  More and more of their customers cannot pay on time.  Some cannot pay the invoices in their entirety and have resorted to smaller, drawn out payments for services and goods, while others have not been able to pay at all. Money is less plentiful but if your customers do not pay, it affects your ability to meet your company’s obligations.  In years past, most companies could afford some nonpaying and slow paying customers, but when many of your customers are having financial difficulties, your company must take action  to ensure your own company’s survival.  You have supplied the goods and services and you should be paid for those efforts. Ignoring your mounting accounts receivable could lead to your own company’s damage or demise. Every company should adopt a procedure for collection of accounts receivable.  Such a procedure should be in place during thriving economic times as well as during the tough economic times so that corporate value is not being lost through inconsistent and ineffective collection procedures. To work effectively, a collection procedure should be in writing and adopted by the company’s management team.  Training should be…