Proactive Accounts Receivable Management

  • Have you had problems getting paid?
  • Does the thought of having to hound your customers to pay make you nervous?
  • Have you postponed making certain investments in your business because you don’t have the capital but you have customers who owe you money?

What would you think if we told you that there are things you could do when setting up a new account to help avoid having accounts receivable problems in the first place? Would you like to learn how to get your documents, systems and procedures in place so that you teach your customers to pay you on time, every time?
If so, you may be interested in our Proactive Accounts Receivable Management Program.
We started this program because here at Penners Bergen ALC, we don’t think of accounts receivable as an “asset” of a corporation. Instead, we look at accounts receivable as low interest (or no-interest) loans you have given your customers.

Think About This
Say for example, your margin is 50%. For every $1,000, you get paid from a customer, you pay $500 for labor and materials and overhead. So, if you’re billing your customer for a $1,000 product, you’ve already paid $500 to create that product. Until your customer pays you, you’ve loaned your customer $500. But, it gets worse. Many businesses use credit to finance their labor and materials and overhead. So, you are now paying interest for the “privilege” of loaning your customer $500 until you get paid on what you sold them. Does that make sense?
Admittedly, some of this cannot be avoided. However, you’d be surprised how much you can do to avoid accounts receivable problems.

The Program Outline
Our Proactive Accounts Receivable Management Program is a six- month subscription program. For a monthly fee for six months, we do the following:

  • Evaluate your current billing and collections processes.
  • Evaluate your accounts and identify any problem accounts that are more than 45 days old.
  • Target those problem accounts.
  • Make recommendations and corrections to your billing documents to improve collections.
  • Improve your collections processes and work with your team to explain the new procedures.
  • Be available to answer questions about accounts receivable issues that arise.
  • Write collection letters where necessary.

At the end of six months, most, if not all, of your accounts receivable problems should be on the mend. For those accounts that have not been turned around, we can help you determine if you need to take further action and, if so, what needs to be done.
So, if you’re ready to turn around your slow-paying and low-paying customers once and for all, schedule an appointment so that we can determine if the Proactive Accounts Receivable Management Program is a good fit for you and your business.