In the business world, January is often a time to reflect and build on the successes of the previous year; make changes to portions of your strategy that didn’t work out as planned; and prepare for what you ultimately expect to be a better year than the last one. Spending some time fleshing out a full strategic contingency plan that encompasses all aspects of what that growth can mean to your company as a whole is a wise investment of time.
Oftentimes, the collections and accounts receivables departments are overlooked or their importance is minimized in this planning phase. However, it’s important to consider all factors that go into increased sales volume. For example, when was the last time you reviewed your new customer credit application? If the answer is greater than a year or so, you are potentially missing out on changes to the laws that govern the collections process and added protections to shield your company from a non-paying customer being let off the hook.
In addition, an open conversation with your collection agency representative could also provide value-added tools and guidelines to help further secure your company against losses in the coming year. For example, if your agency offers free demand letters as a service, outsourcing that simple service can save literally hundreds of man hours per year tracking, typing, stuffing and mailing those letters – and that is before the postage.
Making use of all of the tools at your disposal, including an open dialogue with your sales representative at your collection agency, can go a long way toward assisting you in achieving your growth targets in 2013 while minimizing your bad debt write-offs.
We at Transworld Systems wish you a safe, happy and prosperous New Year!
What are your accounts receivable goals for this year? What are you changing from last year? Share your thoughts with us using the field below!