I recently read a short news brief that indicated that the number of corporate bankruptcies in 2008 has already exceeded the total number in 2007. While sometimes there are circumstances that are industry-specific, and other variables, we often find one of the main reasons for companies approaching a situation such as bankruptcy is a lack of cash flow due to poor accounts receivables methods. As we all know, there are some people that legitimately have trouble paying their bills and then there are some that just do not pay.

We’re also finding that some banks and financial institutions are pulling back on the amount of credit they are extending companies which force them to get a little more assertive in their collection process.

In these uncertain times, now more than ever, we all need to be very conscious of our accounts receivable methods and make sure we are staying on top of customers and clients that fall behind on payments. Some quick tips on what you should pay close attention to:

Early intervention: Don’t wait six months to step up your collection process. Act early.

Continue reading »