Management Information |
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.
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
The Seven Cs: Partnership Danger Signs - Competitive, Not Complementary Action A series of articles exploring the seven critical areas that can indicate a partnership is in trouble.Competitive, Not Complementary ActionJames Carville and Mary Matlin are public relations spokespeople for the Democratic and Republican parties, respectively. Well-Defined Processes - How to Create Interested in learning how to reduce development time, save money and stay in control? Business professionals can learn how to create well-defined processes with the easy-to-manage Process Approach of Plan-Do-Check-Act.Real Tools for Real Business ProcessIn MBA courses, students come across a lot of buzzwords and the theories behind them. Tales from the Corporate Frontlines: Coworkers Collaborate to Complete Successful Initiative This short story, Coworkers Collaborate to Complete Successful Initiative, is part of AlphaMeasure's compilation, Tales From the Corporate Frontlines. It illustrates how important cooperation, collaboration, and communication are to achieving the common goals of a successful organization. Organizational Structure, Creativity, Innovation Organizational structure can inhibit or foster creativity and innovation. The problem with organizational structure though, is that it is resultant of many factors, including history, organic growth, strategy, operational design, product diversity, logistics, marketing, client base, supplier base and so forth. When Change Is In the Wind...Heads Up! In these days of takeovers and mergers, of downsizings and lean management, chances are that you are going to be caught in a job upheaval at least once in your career. Probably more than once!Change in the wind may come like an invigorating breeze on a hot humid night. The Higher You Go The higher you go, the cooler it becomes. Really? Let us begin from first principles. Change Behaviors, Change Performance Every organization is looking for the holy grail of performance enhancement, that one thing that, if it were changed even slightly, would push the productivity of a company way beyond the current level.Over the years there have been many solutions offered to the performance conundrum, from process improvement and process re-engineering to rightsizing and quality initiatives. Delegate or Die! You Can't Do It All - Learning To DelegateThere is not a single management skill more critical to your personal and professional success as an entrepreneur than learning to delegate. But delegating successfully is much more than simply handing out assignments. Getting Your Employees Attention Back to Work It is 9:00 am on a Monday morning. Do you know where your employees' attention is? Is it on work?Picture this. Performance Management - Getting The Most Out of Your Employees Managing for Best PerformanceIn it's simplest form, performance management is a common sense set of discussions that make sure people are clear about what they need to do, have the support to do it and get open and honest feedback on their performance.Any performance management process should answer 4 important questions for your employees:· Direction: What do I need to do and how well?· Feedback: How am I doing? · Rewards: What happens when I do well? · Support/Development: What happens when I need/want help?Lets look more closely at each of these:DirectionEmployees are not mind readers. Motor Vehicle Policy and Your Employee Risks It is becoming more common for employers to require employees to use their personnel motor vehicles for business use. Reimbursement for business use is commonly by way of a kilometre/mileage allowance or a general motor vehicle allowance for the year. Why and How to Work with a Consultant A good consultant provides specialist abilities and experience, innovative ideas, second opinions (reality checks), unbiased appraisals, and new approaches.A good consultant will leave you with tools, plans, and materials, and will transfer knowledge and resources to help you use them. The 6 Steps to Six Sigma Step 1Get the proper level of Six Sigma expertise at the executive level of the company. If the top leaders don't understand the advanced six sigma principles, the company has no shot to attain total quality. Check Your Communication Skills Use this check list to assess your communication skills.Focus* Do you pay complete attention to others when they are speaking? (A wandering focus discourages open communication. Group Meeting Disrupters MEETING DISRUPTERS: If two participants are carrying on a personal discussion that interferes with a meeting, direct a clear and simple question to one of them. In order to avoid embarrassing them, address them by name before asking the question. A Management Strategy I witnessed some interesting behaviour from one of our premier management schools this summer. A behaviour that I have since discovered is not uncommon. The Top 10 Things They Don't Teach You In Business School Here are 10 subjects that academia should be teaching their students in business school:1. Generate revenue for your companyWhat academia doesn't teach you is that the real purpose organizations hire you is to generate revenue. Reducing the High Cost of Absenteeism Employers pay a high price for absenteeism, often more than they may realize, in terms of both financial and production losses and employee morale. Managers may view the tasks of finding a substitute employee as a short-term inconvenience; however, absenteeism frequently has more serious long-term effects. Delegation Obstructions OBSTRUCTIONS: 1. Staff deficiencies. 5 Tips For Creating Great Jobs 1) Create A Powerful "Mission Statement"-When your business mission is clear, every part of your business will improve, because you have a clear, definite major purpose. You will more easily attract people that believe in your mission. |
home | site map | contact us |