Every business that offers credit or has self pay accounts needs to create policies that outline the processes used to deal with the past due accounts. These Collection Policies need to be reviewed and changed on a regular basis. You need to find out what works in keeping your past due accounts receivables at a minimum. You’re always going to have some accounts that do not pay and you are left with no option but to use a third party to recover your money. However, it is up to your staff to stay on top of these accounts and make sure they are contacted regularly to minimize this from happening.
Organizing Account Contact & Follow-up
Use your internal software or create a document or spreadsheet that will allow you to organize and schedule calls and promise payments for consistent follow up. We can assist you in this area if your current software does not have collection capabilities.
Set up policies that include letter timing and when telephone calls should be made.
Write the policies and procedures down as to incorporate them into your daily routines. If you don’t address this with all new hires, you will fall backwards in your collection efforts.
Make sure the staff makes collections a top priority and not the last thing that gets done.
Educate your staff on the importance of continued follow up and contact with your customers or patients. Most businesses put the collections on the back burner. If you aren’t calling on your past due accounts, or your staff feels uncomfortable making calls, we can customize an early stage recovery program for you to make sure you are minimizing the amount of bad debt you have to write off each year.
Set your time frames for letters, telephone calls and placement for collection.
Set up the first letter at X # of days (15 days after the 30 day past due notice), or whatever you and your staff feel comfortable with. Start making telephone calls on all balances over $300, 5 days after your first letter.
By working with your customers in the beginning to avoid payment problems you will maintain a lasting professional relationship. When customers become delinquent on paying, they generally won’t use your services. This is a loss of additional revenues you would see if you were lax on your collection and credit policies. With the proper strategy and training, your staff can make sure everything runs smoothly and your revenues will be at their maximum.
Training your staff to deal with your customers professionally and working with them to solve problems and resolve disputes, will allow you to keep more customers and gain you additional referral business. The second part of the policies is training your staff to understand them and to follow them as closely as possible. You’re always going to have special circumstances that will deviate from your policies, but by keeping consistent with a majority of everything you do, you will achieve success in every facet of your business.