Revenue is important to any business, but it’s not just about the profits. It’s also about successfully collecting money owed to you by debtors. It’s not always easy, but with some organization, you can start to collect outstanding balances more efficiently.
Track your loans – Document who you lent to as well as the date of the loan and the expected payment due date. Also make a special note for overdue payments.
Document customer payment history – Not all customers pay on time. Knowing when a payment can realistically be expected from any given debtor can ease the collection process down the road. Tracking when payments tend to come in from customers will allow you spot trends and allow you appropriately develop a collection plan.
Acknowledge your debtors when paid – Especially for on-time payments, a ‘thank you’ can go a long way in ensuring you’ll continue to receive prompt payments.