Commercial Collections Blog

Preventing Inflated Receivables, What’s Really Collectible?

Putting a smart cash management strategy in place is important for your business practice.  The key for a company is to manage its outstanding accounts receivable. If old balances aren’t written off, your A/R becomes inflated and gives a false view of what is really collectible.  Your current A/R should accurately represent what your company is owed.  Know what’s on your A/R and what the depreciation is.
For example, items that can or will be later returned are actually inflated receivables and don’t correctly reflect your expected cash.  Holding on to old accounts can also be costly.  Excessive follow-ups and multiple invoicing attempts may inevitably cost more than what the receivable was originally worth.

Put a process in place regarding write-offs.  Set a standard for what you are willing to turn over to collections before writing it off your A/R and what you can comfortably write-off without additional collection efforts.

We can help you determine what is really collectible.  For more information on our collection services call 877-740-7839.

Burt & Associates
Solid Experience. Strong Solutions. Since 1979
for Collection Agency Price Quotes

Technorati Tags ACCOUNTS RECEIVABLES, cash flow problems

Related Posts:

• Are your Accounts Receivables Inflated?
• Collections that Cost you Money?
• Inflated Accounts Receivables
• Customer Deductions and Inflated Receivables
• Summary of Collection Laws