Accounts Receivable Checklist

As a business owner, you've reached an agreement with your partners, which includes them making payments to you. It's important to ensure they uphold their part of the deal, or you may need to reconsider your commitments. Just like if you stopped paying your electric bill, the lights would go out—make sure you collect from your clients, or you might have to cut off their services!

Most of your aging summary can be collected if you get to it quickly and act professionally. Set up a process and follow it to a tee!

Review your Aging Summary MONTHLY to identify current and new offenders
Follow up on accounts often until balances are resolved
Frequently provide an opportunity to adjust from invoice to credit card to any clients that are not auto-processing
Call your Business Coach or Region Partner and talk through any accounts past due 60+ days

Communicate with your clients as soon as they are late!

For those who remit payment via check:
- EMAIL:
  “Hi [Customer],
  We are trying to reconcile our books and need to bring your account up to date. Attached are two outstanding invoices. Please remit payment into our office before [date - give them a deadline]. If it is easier for you, we are more than happy to take a credit card. There is no fee for credit card payments.”
For those who usually remit payment via credit card but their card was declined:
- FIRST - Try to run the card again the next day
- SECOND -
  CALL:
  “Hi [Customer],
  It looks like the card we have on file for you is expired. I bet you have a new one with an updated expiration date?”
  (Generally, they will say "that card got compromised", or it truly was just an expiration date issue)
  **Upon receiving the new card, immediately add it to the system and run the charge to confirm it goes through.**

Actions to Consider for your Process:

Hire/barter with an attorney to send collections letters
Consider sending separate letters
- 30+ days: Send Outstanding Invoice email from ARC
- 60+ days: Send Pending Collections email from ARC + Pull Ad
- 90+ days: Send Final Notice email from ARC
IF you have a team member whom you can pass this along to → train them and trust them
Be firm but fair!
Charge off / bad debt information & process
- The Final Option is to pursue legal action personally *outside of corporate*
  - Debt would be assigned to you for further collection or write-offs on your taxes
    - **Speak to your accountant about how to write off bad debt on your P&L for your tax deductions.**

If you will be moving forward with anything other than collecting the full fees (settlement for a lower amount, payment plans, contract adjustment, etc.): DO NOT COMMIT ANYTHING TO THE CLIENT DURING THOSE DISCUSSIONS! Discuss OPTIONS that you would both agree to. Then, reach out to your Region Partner to discuss further and reach a resolution.