In our previous post we talked about the importance of maintaining a strong cash flow, which means that you need to be alert and act decisively on past due accounts.
Today we’ll explore another reason to do so:
Skyrocketing Collection Costs
The longer you wait to collect on those overdue accounts, the more money
you’re flushing down the drain. You’ll need to hire more staff, bring in third-
parties to help you, or spend on new technology to get the job done—all of
which takes a hefty bite out of your profits.
Next time we’ll continue to explore more aspects of your business and how they can be negatively affected if you procrastinate on your collection responsibilities.