W EEKLY EDITION OCT 18, 2017
Getting Paid: Part I …continued
By PSAI Executive Director Karleen Kos
• Invest in technology. If you are poorly organ ized, collecting from customers – even those who want to pay on time –
can be a difficult and time consuming process. Shop around for computer software that can help with streamlining
processes like recurring billing, electronic invoicing, and communicatio n with customers. There are many affordable
options for accounting software, and the PSAI has several supplier members who specialize in integrated packages with
forms that are tailored to the portable sanitation business.
• Create a process and stick to it . Consistently following up with customers about unpaid invoices is critical to your
company's stability. If you owe on your equipment you can be sure your creditors expect to be paid on time, regardless
of whether your customers have paid you. So you need a system for following up with customers who haven't paid, and
you need to follow it without fail.
The most effective approach may vary depending on your location and the laws governing business there. In general,
though, most companies follow up with a phone call or email after no more than 30 days – and after 15 is better. Other
steps in the process can include re - invoicing, late payment penalties, and enlisting a collection agency.
We have heard of companies that will note on the route sheet that the company hasn't paid once 60 days have passed.
The driver calls the office when he arrives at the site to confirm no payment was received that morning. At that point he
will "tag" the units with a note that says something like "not serviced due to non - paym ent" or simply pump them and
take them away if that makes more sense in light of other factors in the business relationship.
Whatever you do, don't let receivables build up. Regardless of the dollar value of the receivables on your books, they won't do
y our company any good until they are in the bank.
Next week: Getting Paid Part II – How to Make Collections Calls and Choose a Collection Partner
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