Commercial Collections Billing Practices Advice

Swiftness is the key to collecting past due commercial accounts because commercial accounts depreciate more faster than consumer accounts.

In creating and implementing a billing system, a credit grantor should recognize that time is the safest refuge of any debtor. The more time they are given, the less likely they are to pay. Hence, sales documents should be explicit about payment terms, return privileges, interest charges on overdue accounts, guarantee and service costs.

Various Commercial Collection Programs Used

A series of letters used together with an account aging sheet or data printout will help to track slow-paying accounts.

All systems should have an organized and mechanical follow-up of accounts at regular intervals, for instance, 30, 60 and 90 days past due.

It is essential to establish regular billing and commercial collections procedures. Follow up on every account to the point where contact-or lack of contact-with the customer indicates some alternative action should be taken.

Help Commercial Collections From The Beginning

Built-in commercial collections controls at the time of sale often assist in receivables recovery and help avoid delinquencies. These include such items as sales contracts or a well-defined vendor's purchase order with conditions of sale clearly spelled out. Appropriate terms should be printed on sales documents (contracts, invoices, statements) clearly and without fail. Such terms will include notice of interest charged on overdue accounts and discounts granted for prompt payment.

Internal control of receivables should include an aging which permits periodic evaluation. This should fit together with commercial collections routines. The time for referral to a professional commercial collection agency should come from the aging at 60 or 90 days past due, and sometimes sooner.

After a first statement has gone unheeded, start your commercial collection procedure. Any program that permits three statements-or a two to three month time lag-before the first collection step is taken will result in a lower recovery ratio.

Any procedures for handling slow-paying accounts should emphasize speed in contacting the delinquent bill payer. A company with a past-due account on your books is probably in the same condition with a number of other suppliers. The debtor may be on the verge of serious financial trouble, and the creditor who moves first is most likely to recover their money.

Get free information and advice on commercial collections.

Are you NICE or do you CARE?

Are you NICE or do you CARE? Most people and most... Read More

Einstein - Definition of Insanity

Insanity in the Sign & Graphics IndustryEinstein's DefinitionAlbert Einstein once said "The definition of insanity... Read More

Effective Meetings: Why Most Meetings are a Waste of Time

Whether your company holds one meeting a week or dozens of meetings a day it... Read More

Help Your Employees Prepare for a Performance Appraisal

PREPARING EMPLOYEES FOR THE PERFORMANCE APPRAISAL INTERVIEWS: Remind employees to give some thought to the... Read More

Policy & Procedure Manuals - Tools For Greater Productivity and Efficiency

In today's tough retail environment the retailer needs all the tools he can get to... Read More

Do Customers Like the Feel of Your Organization?

In two recent articles "Some Evidence of How We Are Spiritually Connected" and "Healing Dysfunctional... Read More

Let the Professionals Help You Out - Outsource

As your website grows in terms of attracting more footfalls, generating more business, and providing... Read More

Meetings: Don?t Just Show Up, Stand Out and Shine

Meetings, whether they're regularly scheduled routines in your company or now-and-then get-togethers, can be a... Read More

To Meet or Not to Meet - What are the Questions?

Meetings can be a total waste of time or a powerful and productive communication tool... Read More

The Three-Dimensional Communication System

Human communication is always three-dimensional. No spoken or written message is ever just words or... Read More

Designing Your Healthy Administration - A Management Overview

Management or Leadership?Simply stated, management ensures that things get done, in accordance with accepted policies,... Read More

Effective Email Communication

Email, when used properly, can generate additional direct sales and leads; can be used as... Read More

Business Fit

I have been an entrepreneur for over twenty years and have absolutely embraced information that... Read More

How to Create a Trusting Manager-Employee Relationship

BUILDING TRUST AS A MANAGER: 1. Be reliable. Follow through on things. Keep your promises.... Read More

5 Steps to Continuous Process Improvement

Part One of Creating Well-Defined Processes SeriesWhat if your sales increased from $100,000 to $110,000... Read More

Get It Done! Soft Skills not Hard Tools are Required

If your organization has people, then interpersonal skills are needed.I work with companies that are... Read More

How to Enhance Quality in Your Business

Every business must strive to provide quality products and services to customers. To achieve that... Read More

How To Conduct Effective Meetings

Before you call your next meeting, the FIRST step is to decide if it is... Read More

What Your Employees Want You to Know (But You Might Be Afraid to Ask)

This is a challenge for every company owner and manager. You have tremendous plans for... Read More

Selecting Top Talent: Improve Your Batting Average

I recently gave a presentation to a group of business and community leaders on how... Read More

Stop Waste, Fraud and Abuse

Each year, businesses write-off six percent of revenue to waste, fraud and abuse. But why... Read More

Building Trust in Your Business Relationships - 10 Steps

There are some simple things you can do with your people to ensure that they... Read More

Management Procedures Usability ? How to Improve

Are your people consistently following your procedures? Each year, organizations lose thousands of dollars through... Read More

Performance Appraisal Scenarios: Improve Your Communication

IMPROVING COMMUNICATION DURING THE PERFORMANCE APPRAISAL: If the employee has trouble getting started on the... Read More

Too Much Time Treating Symptoms

A man drives down the highway each day on his way to work. On Monday... Read More

Creativity Management - The Value of Being Prolific

When asked his secret to success, the author Graham Green said that it was down... Read More

The Key to Successful Performance Objectives

Have you ever tried to drive somewhere without proper directions? This almost always turns out... Read More

Innovation Management: The Time Factor

Creativity can be defined as problem identification and idea generation whilst innovation can be defined... Read More

Few Things Are More Destructive Than An Insecure Boss

Few things are more destructive to a career than a boss who is insecure. Unfortunately,... Read More

Five Tips for Analyzing an Income Statement

In today's article, we'll be looking at the income statement, which is the most deceptively... Read More

The Paradox of Job Enrichment

Ellen was a clerk working for a large insurance company. One day, she spotted a... Read More

Another Use for Meetings

Every meeting is a laboratory where you can observe and learn important things about the... Read More

Why Would Anyone Do That in My Meeting?

Imagine that you open a meeting by saying, "We need to talk about the budget."And... Read More

What Every Manager Should Know About How to Maximize the Two People Inside

Every one of us, in reality, has two people inside: The person we are today... Read More

Why Do Managers Create Low Morale? Or Does My Bum Look Big In This?

Why do managers create low morale as a product of their management and what can... Read More

Computer Consulting Profit Secrets

Do you own or manage a computer consulting company? Are you having trouble growing your... Read More

Making Your Workers Your Partners

There is an inherent conflict between owners and managers of companies. The former want, for... Read More

Qualities of a Great Manager

In the call center environment we are often only as successful as the people we... Read More

The Seven Essentials of Business Communication

There are seven essential elements to successful business communication:StructureClarityConsistencyMediumRelevancyPrimacy/RecencyPsychological Rule of 7±2If you are going... Read More

A Journey of a Thousand Miles

You can't build a reputation on what you are "going" to do. Henry Ford Everyone... Read More

Focus on Outcomes to Keep Your Business On-Course

Did you know that an airplane in flight is off course nearly 98% of the... Read More

Change and Performance - Training May Not Be The Answer

Introducing new products or services, bringing new people on board, developing a new process or... Read More

Comparing Ancient Programs from the East to Modern Programs like Stephen Covey.

Comparing Corporate and Personal goal attainment programs that have developed over thousands of years with... Read More

Time-Wasting Problems - One Question to Move You Forward

In any organisation, progress is frequently impaired by the time taken up to resolve problems... Read More

Seven Cs to Avoid Procedure Writing Errors

You do your best to make sure your organization is operating as effectively as possible.... Read More

Get Out Of The Stone Age: Give Leadership Talks

160 years ago, the newly invented electric telegraph carried the first news message. The message... Read More

Business Fails When We Do Not Talk

You may remember being told as a child, "Keep quiet!" "Children should be seen, not... Read More

Training and ROI (Return On Investment)

Statistics consistently reinforce that the biggest challenge in today's contact center environment is agent training.... Read More

Give Yourself a Boss Day Gift, Part 2: Are You the Position or the Person?

Are you the position or the person?Bosses can lose their own identity sometimes. It's easy.... Read More

Provisioning/User Management System Upgrades: Part I -- Ten Reasons Why Not To Do An Upgrade

Tommy Sherman daily monitors a helpdesk-provisioning queue for a large company. The current provisioning/user management... Read More