At the beginning of every fiscal year-end, finance professionals examine their accounts receivable aging and budget for the following year’s doubtful accounts. If your firm is not employing trained credit professionals using the latest debt recovery strategies and collection vendors, setting a budget for doubtful accounts is likely holding back cash that could otherwise be paid to shareholders.
Your business works hard to give excellent service and
deserves to be paid for its services. You owe it to the shareholders of your
organization to explore all avenues to get paid. You are not alone if you have yet
to explore all avenues to get paid sooner. Many finance professionals are so
busy with the regular day-to-day work or new systems implementations to take a
long look at solutions to an unpleasant problem.
The top four reasons finance professionals delay action to
collect to fill accounts are:
1)
Our staff already do this as part of their jobs
2)
I am too busy right now
3)
The only problem accounts we have are close
friends of the owner
4)
We don't want to lose the customer
This top four list comes from hundreds of calls our salespeople
make or receive each year. As you can see, if any of these four top reasons
resonate with you, you are not alone. The collection of doubtful accounts could
be a more pleasant subject. That's why developing a simple system to deal with
this issue consistently will have you sleeping soundly at night.
Many business owners and finance professionals who take the
time to implement simple processes experience more profitable business growth
with less stress and headaches. If your firm gives its customers time to pay, the
collection of doubtful accounts will be part of your reality.
There are numerous benefits to a sound policy for collecting
doubtful accounts. The first benefit is knowing the issue is finally addressed.
Second, there is significantly less pressure on the business to absorb the
financial hit and remain profitable. Third, your customers will learn your
business is serious about getting paid and will ensure your invoices receive
prompt processing. Fourth, consistent policies on accounts receivables lower
the strain and stress on your staff members. Our recent customer implemented a
few of these simple recommendations, and they are now back on track for a
reasonably profitable year-end.
How can AAB help me to collect doubtful accounts?
Acting after reading this article is a significant first
step. Whether with Account Adjustment Bureau or any other reputable debt
collection agency, you are now working on a solution to a long-standing
problem. At Account Adjustment Bureau, we examine the collection of your
doubtful accounts by going through your documentation, terms and conditions,
and general credit granting process to help you plug the holes. Our firm has
been helping companies like yours collect doubtful accounts since 1973 and can
recommend time-tested procedures and process to help you get control of those
slow payers.
Be prepared, however. You may lose one or two FOB or “friends
of the boss” accounts, although we are willing to bet those customers are
unprofitable for your company. Imagine the relief you and likely the business
owner will feel once you don't have to deal with that FOB again.
The path to effective collection of doubtful accounts is straightforward.
Let's talk.
Call or e-mail us today for a confidential conversation. We
will let you know if Account Adjustment Bureau can help, or we can refer you to
a strategic partner that specializes in the areas of your firm’s process that may
be deficient.
If you think that you're ready to deal with those nagging
doubtful accounts once and for all, give us a call at 1-866-448-3936 or fill
out our contact us page at https://www.accountadjustment.us/contact
E-mail works too. Connect with us at info@accountadjustment.us.
