While it’s not a good practice to wait until the end of the year to start collecting on overdue accounts, it does provide an opportunity to find those accounts as most businesses are forced to close their books for tax purposes. Cleaning up a business’ books can help locate accounts that have not been paid. http://www.youtube.com/
A few tips to help with the process:
Do not just write off bad accounts: If a business finds accounts that have not been paid, regardless of the ageing, it’s a good idea to initiate collection activity on those accounts as long as they fall within the statute of limitations. Sending those unpaid invoices to a collection agency just might improve cash flow when a business owner thought otherwise. A business can still write off the account and have a collection agency work it.
Improve internal processes: It is not a good practice to wait until the end of a fiscal year to start collecting on unpaid invoices. Having a timely process for notifying customers that fall behind and additional processes for sending those accounts to a collection agency are part of a sound accounts receivables program that any business should have in place.
Utilize a third party: Reputable collection agencies can assist a business of any size in securing past due accounts. While they can perform much better if they get those accounts early in the delinquency, a collection agency can help collect on accounts even if they have been unpaid for long periods of time.
More on the subject of cleaning up the books and improving accounts receivables procedures including an educational video can be found at: http://www.americanprofit.net/
About American Profit Recovery:
American Profit Recovery (APR) is a collection agency with offices in Massachusetts, Michigan and North Carolina. Founded in 2004, APR specializes in the collection of third-party debt in industries such as medical/dental, banking, trades, lawn care and other professional services. With early intervention and a strong focus on ethics and diplomacy with consumers, APR works hard to preserve the relationship between client and consumer with an ultimate goal of keeping the business relationship intact. The firm serves approximately 3,500 clients nationwide. American Profit Recovery and their team have earned many awards including Best Places to Work in Collections, The ACA International Foundation Fellow Award and Banker and Tradesman’s Gold Readership Award. 800-711-0023 http://www.americanprofit.net/
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American Profit Recovery is a collection agency with offices in Massachusetts, Michigan and North Carolina. With early intervention and a strong focus on diplomacy with consumers, APR works hard to preserve the relationship between client and consumer.