How do I get my customers to pay on time?

by Craig
(Cleveland, OH)

I run an auto repair shop out of my garage. I usually get paid when they pick up their car or truck, so that's no problem. But some businesses ask me to send an invoice to their business. I don't mind doing that, but then what if they don't pay right away? Any ideas?

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Craig,

Thanks for writing!

Every small business accounting system needs a good method for collecting accounts receivable. The system I use and recommend is a 3 step process that starts with an invoice, then in 10 days you send out a reminder, in another 10 days you send out a past due notice, and perhaps a phone call. I rarely have trouble with a customer going past those 30 days. For more info check out this page on my site

http://www.small-business-acccounting-info.com/collecting-accounts-receivable.html

or click on the Accounts Receivable tab on the Table of Contents here on the left, and at the bottom of that page there's a link also.

Hope that helps you with collecting accounts receivable Craig, and thanks again for visiting my site!

Kathy