Delinquent customer accounts can bring your small business'
cash flow to a grinding halt. But before you hand over your bad debt to a collection agency you may want to revamp your own attempts to secure those overdue payments. Establishing a clear-cut system of debt collection that effectively uses all the tools at your disposal will greatly improve your chances of receiving your money and help your business avoid the need for a
working capital loan.
As you begin to put together a system for recovering outstanding debt, you should first look at your accounting software. Several of the major accounting software vendors, such as Peachtree and QuickBooks, offer a range of features that will help make your debt collection run more smoothly. Among other things, these applications can clearly organize and display all the information you may need regarding your customers and their outstanding invoices.
