If you are like many small businesses, even a few late payments on your accounts receivable can seriously crimp your cash flow. It is vitally important that you take immediate and systematic steps to limit the number of past due receivables that you have at any time. The number one strategy is to have a system in place that limits the number of accounts that go past due in the first place. There are numerous tools and strategies for doing just that. However, today, we will concentrate on how to deal with the past dues once they appear.

Here are some tips that will help you to reduce your outstanding receivables: