As you get near the end of the year, it is more important than ever to tighten up your accounts receivable. Remember, the longer an account goes unpaid, the less likely you are to collect on it, so it’s important that you, or someone on your staff, allocate time on an ongoing basis to collect on your accounts.

Five Steps to Collecting on Overdue Accounts

1. Contact the customer as soon as a payment is overdue. 
   
   
2. Get the customer to verbally commit to when the invoice will be paid.  
   
   
3. Document that commitment by email back to the customer. If you and the customer have agreed on a payment plan, detail that in the email.
   
   
4. Follow up with the customer on a regular basis until the account is paid in full.
   
   
5. If payments lapse, immediately contact the customer to remind her of her of the consequences of non-payment, such as interest charges, reporting to credit bureaus, etc.