Building a successful business is not always easy. Sometimes it takes years of sweat and struggle to find the right business model and employees, and to establish a loyal customer base. The last few years have been particularly difficult for many businesses that collect payments from customers via invoices after the sale.
If you found your business in a cash flow crunch due to delinquent customer accounts, you may be looking for ways to get over the financial hump and to protect yourself and your business in the future.
Many businesses have developed a collections timeline, particularly those who have employees assigned to handle the accounts receivable duties. A collections timeline is a flow chart with specific actions to be taken to collect accounts as the balances age. Common benchmarks are 30, 60, and 90 days.
If your business does not have a collections timeline, make one today. Decide what actions you or your staff will take when accounts reach each milestone. Set standards for in-house collections activities and decide at what point you will send an account to an outside collection firm. If you decide keep the accounts in-house for collections, be sure your employees are trained to follow the applicable rules in the Fair Debt Collection Practices Act.
If you need assistance making the decision on which method of debt collecting to choose, developing a collections timeline, or help with other matters related to managing your business, the attorneys at the Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can advise you regarding your potential liability exposure, as well as recommend agencies in your area. Contact us today at (412)765-0546 or via email at firstname.lastname@example.org.