While having a small accounts-receivable balance indicates good financial management, (around 1.5% to 2.5% of your gross income), collecting past-due balances is a displeasing aspects of business. Studies show that 75% of receivables that are 3 months delinquent are paid. However, this number drops to 56% after 6 months. Therefore your delay in collecting past-due accounts will reduce your chance of receiving payment. This checklist should help you reduce the stress of collecting past-due accounts:

• Encourage customers to pay sooner by offering discounts for early payments. For example, offer a 2% discounts for accounts paid within 10 days rather than 30 days. Keep an eye on the calendar for tax refund season.
• Keep an eye on the calendar for tax refund season. Most customers want to pay their bills and will pay if they have the money.
• After 30 days of no payment, add a service charge. Contact your attorney to ensure that you do not exceed your state