One of the first and best ways to boost cash flow is managing all delinquent accounts. Accounts over 30 days must be reviewed to identify those with a low probability of being collected without more intense effort. These accounts result in increased Days of Sales Outstanding (DSO) and eventually debt writeoffs.
If the account is not responding to your collection efforts — outsource it to a debt collection agency. Keep in mind that an account 60+ days past due has only a 60% chance of being collected.
