Even in good times, many customers are slow to pay. With the current economic situation, you may see collection times lengthening even more as your customers begin to conserve their cash.
Many companies spend a large amount of time at the end of a month running reports and then making collection calls. Often the over due balances that appear on the monthly report occurred at the beginning of the month and are much more than 30 days past due.
You should consider using a management tool such as an Alert to improve your collection process. You can set the alert to send a notification every morning that includes the past due invoices as of that day and immediately begin your collection process. With the right technology, the alert can be structured to include all the information necessary to make the collection call, such as the contact name, phone number, invoice number and amount past due. This will help your employees become more effective, reduce the time it takes to collect the cash that is due you, and improve your cash flow and liquidity.