Accounts receivable and debt collection processes require knowing and following all laws that apply to these types of financial transactions. Laws like the Consumer Financial Protection Act, the End Debt Collector Abuse Act, and the Fair Credit Reporting Act concern when, how, and how often you can contact a debtor. Business owners who need clarification of these laws can reference the Small Business Administration’s resources, consult an attorney, or work with an accountant to put good collections processes in place.
Small Business Administration Training
The SBA provides resources in almost every area of small-business ownership and operation, including collections. Online training, workshops, local training, and mentoring sessions provide flexible training to get busy business people up to speed on organizing and running efficient collections.
Work with an Accountant
If collections become a problem in your business, you may want to hire an experienced accountant. An accountant can help your business establish a good credit-management system, expand payment options, and develop credit policies and procedures. Establishing a consistent series of graduated methods to collect on aging receivables increases collections success and provides customer options for payment. Practices such as sending friendly payment reminders, making regular payment inquiry calls, and sending late payment request letters or emails keeps your business in contact with customers who owe money for effective resolution.
Simplicity Consulting can help you establish consistent receivables and collections for your business, along with full-cycle accounting and bookkeeping. Our accounting experts use the latest accounting technology and software to take the pain out of accounting for your business.