| ACTION |
Mail a friendly reminder |
| WHEN |
On payment due date |
| COMMENTS | QuickBooks has a template. Customer name, billing address, and amount past due are automatically entered based on the information you have recorded in QuickBooks. |
| ACTION |
Mail a firm letter requesting payment |
| WHEN |
Two weeks following due date |
| COMMENTS | You can use the QuickBooks template for this, too. Make it easy for your customer to pay by including a self-addressed, stamped envelope. |
| ACTION |
Phone the customer |
| WHEN |
Three weeks following due date |
| COMMENTS | Try to determine the cause of non-payment and resolve the issue. Is the customer dissatisfied with your service or in a temporary financial bind? Consider the value of maintaining a good relationship with the customer, as well as the need to collect what you’re owed, and be prepared to offer assistance.
Resolve customer complaints or suggest a payment plan. Insist on a firm schedule, and put your agreement in writing. It’s important to record the date and details of your phone conversation, or ask your customer to make his demands in writing. |
| ACTION |
Mail a collections notice |
| WHEN |
Five weeks following due date, if customer has not been responsive |
| COMMENTS | Collections notices are most effective when they are brief and aimed at a single purpose. Be definite, concise, and specify a last-chance date for payment. QuickBooks has a collections notice template. |
| ACTION |
Send account to collections agency. Remember to document this
action in your records. |
| WHEN |
Seven weeks following due date |
| COMMENTS | What does a collections agency do? |
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