“I am too busy”

One of my favorite quotations comes from the late and great John Lennon,

         “Life is what happens when you are busy making other plans.”

It is true that sometimes we are so busy with the day to day details that we miss the big important moments of our life. We try to remind ourselves to slow down, breathe and see the big picture.

It is also true that small business owners get so caught up in the minutiae of running their businesses that they do not keep track of their accounts receivables. You rarely hear a small business owner say, “I am too busy to sell new accounts” or, “I am too busy to provide good service to my clients”, but far too many times, they are “too busy” to focus on the money owed to them until it becomes a big problem. 

Keeping track of your receivables is as important to the health of your business as sales and customer service. 

For the health of your small business, you must devise a plan to monitor your receivables at 30/60/90 days and have a plan to collect the money owed to you. We recommend sending two follow up letters and a final pre-collection letter and then getting your old accounts off your desk and out for collection. If you select the right collection agency, they will help you come up with a process that works for you.

Don’t be like our past customers who were too busy to focus on A/R until:

•           they had 300K in outstanding debt and could not make their payroll
•           they had to write off 50K in old debt because the statute of limitations had expired
•           a customer who owed them 10K retired, sold his house and moved away

Delaying sending accounts to collections can actually cost you, in higher fees as well as some other soft, but very real costs.

Are you ready to focus on recovering your bad debt but not sure how to find the right collection agency? Download our free e-book that will help you choose the agency that is right for you.