How to Prevent Overdue Accounts in an Accounting Sector or Business

Step-by-Step Guide

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   Step 1: Screen clients ahead of time.

   Some businesses claim the best way to avoid overdue accounts is to check the credit history of prospective clients.
   
   However, this can limit your business opportunities, since you are effectively excluding any clients with past credit problems.
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   Step 2: Develop good relationships with your clients will be a start.

   Be responsive to their needs, and clear about yours. , Write all communication and statements using plain language so that your clients will be able to tell when their payments are due. , Some business owners believe phone calls on even the first day after a payment is overdue can help to prevent outstanding balances. , Offering early payment discounts to late-paying customers can also assist in bringing past due accounts under control. , Not allowing clients to do business with your company if their accounts are past due will also encourage a payment in some instances.
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   Step 3: Make it very clear to consumers and clients when their payments are due.

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   Step 4: Follow up quickly after billing due dates.

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   Step 5: Consider a discount scheme.

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   Step 6: Freeze or terminate client transactions when necessary.

Detailed Guide

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