A Few Tips on How to Improve Your Bottom Line
By James C. “Beau” Brincefield, Jr.
Business News, published by the Alexandria Chamber of Commerce
Unless you get paid in advance for the goods and/or services you sell, you are extending credit to your customers and clients. Here are a few tips for improving the collectability of those accounts receivable.
Get it in writing. Using a simple, one page written purchase order form accomplishes several critically important objectives in addition to providing written evidence of the client’s/customer’s agreement and obligation to pay.
Collect interest. A written agreement can obligate the customer/client to pay interest on a delinquent account.
Collect Collection expenses. A written agreement can obligate the customer/client to pay the cost of collecting a delinquent account, including attorney’s fees and court costs. Without a written agreement, you cannot recover your collection costs.
Extend the statue of limitation. A written agreement extends the statue of limitations on delinquent accounts from three years to five.
Keep track of your client/customer. A written agreement provides an easy way to obtain basic information about your customer/client, which will improve your ability to collect an account if it becomes delinquent.
Call Beau at (703) 836-2880 for a free copy of the complete article from which these excerpts were taken.