It isn’t always possible to avoid working with customers who do not pay their invoices on time. Some customers allow their bills to go into collections. However, in some cases there are bookkeeping practices for small businesses that can decrease the chances of invoices going unpaid and the need to work with a debt collection agency.
Accurate and organized bookkeeping is essential to every businesses. It does not matter the size of your customer base or how much revenue your product or service generates each month. At Howe & Associates Debt Collection Law, we want to help you create habits that will get you paid on time. Continue reading for 3 bookkeeping practices for small businesses.
#1. Keep Daily Records of Sales and Expenses
If you are a small business, it may seem unnecessary to balance your daily sales and expenses every single day. However, daily updated records are important to a well balanced budget. And most importantly, they help you to spot red flags such as unpaid invoices before they become a serious problem.
#2. Pay Your Bills in Full and On Time
Another of the bookkeeping practices for small businesses that you should practice is prompt payment of your own invoices. If you are expecting your customers to pay their invoices on time, it is important that you practice what you preach. Consequently, a clean credit may be important if you have to move forward with a judgement to collect on unpaid debts.
#3. Follow Up on Invoices Before They Are Overdue
While some businesses wait to contact customers until their bills are overdue, it is best to follow up before the bill is late. This could mean sending a second invoice or making a friendly call to check in with your client.
Even when you put these bookkeeping practices for small businesses in place, you will likely experience the unpleasant job of collecting on unpaid debts. If normal efforts to obtain payment have not been enough, it may be time to hire a debt collection attorney. To learn more about working with Howe & Associates Debt Collection Attorneys, click here or call 678-566-6800 to schedule a visit with one of our experienced debt collection professionals.