Deal With Slow Receivables Now
Too many businesses take a passive approach to collecting receivables. It is not poor customer service to expect customers to pay according to terms as long as your terms are reasonable. The first thing you need to know is how quickly you are collecting receivables. If you're not measuring the turnover on receivables, start doing so immediately. Once you know what that number is, establish a target for improving it. As with any performance indicator, it is best to establish attainable targets and then incrementally move them rather than setting targets that require large gains in a short time frame. While there are exceptions to this approach, incremental improvement is usually preferred because they are generally attainable and represent success leading to less frustration and abandonment of such efforts. Don't delay in dealing with receivables. It is one of the most important aspects of your business.