Accounts Receivable System > Daily Accounts Receivable Procedures

❑A Consistent and Organized approach to the Collection of Past Due Accounts will ultimately ensure a much lower number of Past Due Accounts.

•The best Collections scheme - when performed erratically - is worse than having no Collection scheme at all.

✓One person, or if a large Company, one Supervisor must be "in charge" of the Collection process and should also be both accountable and rewarded for its success.

✓The Collection methods recommended here represent a set of practical and effective collection procedures which have a proven record of success.

•Have a Written Collection Plan (such as the one outlined below) that will be executed even when the primary Collections person is away on leave.

❑The four step plan for effective collections:

1.Contact Past Due Subscribers Regularly

2.Design and Execute Specific Collection Procedures

3.Assess Late Charges on Past Due Invoices

4.The Salesperson must contact the Subscriber who has not paid for their Installation (or any other commission related Sale).

❖See the Collect Past Due Accounts chapter for some experience tested "how to" strategies that will help you get paid in a timely manner for the work your Company has performed.

•The best Collections scheme - when performed erratically - is worse than having no Collection scheme.

✓One person, or if a large Company, one Supervisor must be "in charge" of the Collection process and must also be both accountable and rewarded for its success.

•This Four Step Collection method represents a set of practical and effective collection procedures that have a proven record of success, but should also be customized to your Company's needs.

•Most importantly, you must have a Written Plan that can be executed even when the primary Collections person (or Supervisor) is away on leave - and which at a minimum - should include these four Tasks:

❖See the Accounts Receivable Collection Report chapter.

•Some important features and benefits of the Accounts Receivable Collection Report are:

✓It assists in the management and Collection of Past Due Accounts

✓It provides a review of the overall Aging Status of your Company's Receivables.

✓It may be used as part of the Monthly Review process.

✓It offers a compact Accounts Receivable Summary format.

✓It may be easily filtered by Division code.

•It is not meant to tie back to your Company's Financial Statements.

✓It will only include those Accounts who have an Accounts Receivable Balance Due greater than $0.00.

✓The Balance shown will only reflect Un-Applied Receipts and Credit Memos when, and only when the Subscriber's "net balance" is greater than $0.00.