Speeding Collections

Source: Accounting Office Management & Administration Report

Act quickly. The longer you wait, the less likely you will collect. The success rate on collections is only 73 percent once the account is three months delinquent, drops to 57 percent after six months, and to 29 percent after one year. 

Use administrative people to collect when partners are too busy. 

Always talk to a person who can authorize payment. 

Find out why the payment is late. If the issue is the amount of the invoice, an explanation may solve the problem. 

Get confirmation of the bill and a promissory note if possible. 

A third-party collection agency can avoid antagonism.

From Accounting Office Management & Administration Report, April 2005, p. 2. 

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