DOs and DON’Ts to Help Avoid Collection Problems

Robert HobermanManaging Partner, Hoberman & Lesser CPAs, LLP

Many companies run into problems with customers or clients not paying their bills on time — or not paying at all.

The best way to avoid uncollectible bills depends on several factors — such as whether you sell products or services and the type of payment practices that are customary in your industry. For example, payment upon delivery may be more common in retail transactions but it is not common when providing services or in transactions between manufacturers and suppliers.

Despite the differences, there are some guidelines that can help most types of businesses. Your overall goal should be communication with your customers and clients. Specifically, here are some DOs and DON’Ts to consider.