It isn’t always possible to avoid working with customers who do not pay their invoices on time, or allow their bills to go into collections. However, in some cases there are organizational business practices small businesses can observe to decrease the chances of invoices going unpaid or needing to work with a debt collection agency.
Accurate and organized bookkeeping is essential to every businesses, no matter the size of your customer base or how much revenue your product or service generates each month. At Howe & Associates Debt Collection Law, we want to help you create any habits that will help you get paid, and on time. Continue reading for 4 bookkeeping practice every small business should use.
#1. Keep Daily Records of Sales and Expenses
If you are a small business, it may seem unnecessary to balance your daily sales and expenses every single day. The truth is records that are updated daily are not only important to a well balanced budget, but also help you to spot red flags such as an unpaid invoice before they become a serious problem.
#2. Pay Your Bills in Full and On Time
If you are expecting your customers to pay their invoices on time, it is important that you practice what you preach. A clean credit may be important if you have to move forward with a judgement to collect on unpaid debts.
#3. Follow Up on Invoices Before They Are Overdue
While some businesses wait to contact customers until their bills are overdue, it is best to follow up before the bill is late. This could mean, sending a second invoice or making a friendly call to check in with your client and see how you can help them make their payment on time.
Even when you practice organized and consistent bookkeeping, you will likely experience the unpleasant job of collecting on unpaid debts. If normal efforts to obtain payment have not been enough, it may be time to hire a debt collection attorney. To learn more about working with Howe & Associates Debt Collection Attorneys, click here or call 678-566-6800 to schedule a visit with one of our experienced debt collection professionals.