Good Bookkeeping Can Decrease the Number of Collection Calls you Have to Make

by DenverBookkeeper

You may be surprised to know that good bookkeeping can decrease the number of collection calls your business has to make! If you are offering a product or service, then you may have to make collection calls from time to time. Clients may forget to pay, or they may be avoiding you altogether if they are having cash flow issues. Either way, the calls will have to be made, but one thing that you should note is that working with a business is much different from working with an individual. Sometimes you may have forgotten to reference a purchase order or work order number on your invoice, and your client may have internal procedures that have to comply with in their business.

Bookkeeping can reduce collection callsProper bookkeeping can actually help you to cut down on collection calls, and there is a very good reason for this. In the worst case scenario you will end up making a number of collection calls and ultimately needing to remind your clients constantly. While the majority of them will pay up at some point, you may have many different clients and calling them all in the name of collections will take up valuable company time. This is time that you may not have, and luckily the right bookkeeping techniques will keep this from happening. A good bookkeeper can follow up on invoices for you, in accordance with your standard payment terms, and often having a outsourced professional call can serve as a reminder to your clients that you are a business person with professional expectations regarding payment.

You may be able to send your clients an e-mail reminder, or you might create an automated system that will call the clients on a schedule. These are just a few examples that you can utilize, but you should know that the collection calls will never stop. These are an unfortunate fact of business and they will occur either because someone cannot pay, or because they forgot. What these will do is ensure you plug any existing revenue leaks, and of course keep your customers happy.

This can become very complicated, but in the end you will be glad that you spent the time and effort making sure the books are balanced, and you will want to make sure it is accomplished properly even if you need to hire some outside help. In any case, make sure all of your ducks are in a row and cut down on those collection calls!

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