{"id":788,"date":"2010-03-03T10:28:52","date_gmt":"2010-03-03T16:28:52","guid":{"rendered":"http:\/\/bgs.com\/?page_id=788"},"modified":"2010-03-03T10:28:52","modified_gmt":"2010-03-03T16:28:52","slug":"collection-of-your-accounts-receivable","status":"publish","type":"post","link":"https:\/\/www.bgs.com\/blog\/2010\/03\/03\/collection-of-your-accounts-receivable\/","title":{"rendered":"Collection of Your Accounts Receivable"},"content":{"rendered":"

By Joan M. Quade
\nSpring 2009 In Brief Newsletter <\/em>
\nIn these tough economic times, companies find that payments on their accounts receivable are delayed and diminished.\u00a0 More and more of their customers cannot pay on time.\u00a0 Some cannot pay the invoices in their entirety and have resorted to smaller, drawn out payments for services and goods, while others have not been able to pay at all.
\nMoney is less plentiful but if your customers do not pay, it affects your ability to meet your company’s obligations.\u00a0 In years past, most companies could afford some nonpaying and slow paying customers, but when many of your customers are having financial difficulties, your company must take action\u00a0 to ensure your own company’s survival.\u00a0 You have supplied the goods and services and you should be paid for those efforts. Ignoring your mounting accounts receivable could lead to your own company’s damage or demise.
\nEvery company should adopt a procedure for collection of accounts receivable.\u00a0 Such a procedure should be in place during thriving economic times as well as during the tough economic times so that corporate value is not being lost through inconsistent and ineffective collection procedures.
\nTo work effectively, a collection procedure should be in writing and adopted by the company’s management team.\u00a0 Training should be done for staff who will implement the collection procedures so as to provide consistent and effective application of the collection procedure.\u00a0 There are many considerations in developing such a procedure, including preserving customer relationships.
\nThe collection process should be progressive in that the initial actions to collect will consist of mild prodding reminders and then should progress to the most aggressive forms of collection.\u00a0 The mildest reminders may include card or letter reminders, followed by phone calls from staff.\u00a0 If that is unsuccessful it many be followed by more aggressively worded correspondence and a call from the collection manager.\u00a0 These efforts will be enough\u00a0 with many customers.\u00a0 However, in this economic climate, more and more customers must be taken to the next level.\u00a0 If the progressive collection efforts do not work, the company must decide whether\u00a0 to involve legal counsel, who could send a collection letter, make a call and\/or sue to collect the account. If the account is small (less than $7,500) the company may want to sue in conciliation court.\u00a0 Conciliation court provides a less expensive and quicker way to obtain a judgment for the amount owed.\u00a0 The filing fee is only $50 -$70 depending on the county, and most courts will schedule a hearing within six months.\u00a0 If the amount is greater than $7,500, the company must sue in regular district court.\u00a0 The filing fee in most counties is $250, and it can take a year to get to trial, if the defendant disputes the claim.\u00a0 Many defendants who are in collection do not dispute the amount and a default judgment can be obtained fairly quickly without waiting an entire year.\u00a0 Once a judgment is obtained, then collection on the judgment must start by finding what assets the defendant may own.\u00a0 If the defendant has assets, then there are ways to determine what those assets are and how to collect them.\u00a0 Some assets are exempt under Minnesota law.\u00a0 Others are collectible to satisfy the judgment.
\nThis article gives only a brief overview of the collection process. Before attempting collection you should seek legal advice regarding the specific laws related to collection and litigation.\u00a0 We have assisted our clients in developing a progressive collection procedure and in sending collection letters and making calls for our clients to help them collect their accounts receivable.\u00a0 This has helped to optimize their own value and maintain their revenues even in a tough economy.\u00a0 We can assist in bringing conciliation court actions or district court lawsuits for small as well as very large collection matters.\u00a0 If you need assistance in setting up a progressive collection procedure or in collecting your accounts receivable, we would be happy to assist you in your efforts.\u00a0 We can advise or partner with you to optimize your efforts.\u00a0 Give us a call to discuss how we may be able to assist you in your business.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Joan M. Quade Spring 2009 In Brief Newsletter In these tough economic times, companies find that payments on their accounts receivable are delayed and diminished.\u00a0 More and more of their customers cannot pay on time.\u00a0 Some cannot pay the invoices in their entirety and have resorted to smaller, drawn out payments for services and goods, while others have not been able to pay at all. Money is less plentiful but if your customers do not pay, it affects your ability to meet your company’s obligations.\u00a0 In years past, most companies could afford some nonpaying and slow paying customers, but when many of your customers are having financial difficulties, your company must take action\u00a0 to ensure your own company’s survival.\u00a0 You have supplied the goods and services and you should be paid for those efforts. Ignoring your mounting accounts receivable could lead to your own company’s damage or demise. Every company should adopt a procedure for collection of accounts receivable.\u00a0 Such a procedure should be in place during thriving economic times as well as during the tough economic times so that corporate value is not being lost through inconsistent and ineffective collection procedures. To work effectively, a collection procedure should be in writing and adopted by the company’s management team.\u00a0 Training should be…<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"coauthors":[],"yoast_head":"\nCollection of Your Accounts Receivable - Barna, Guzy & Steffen, LTD.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bgs.com\/blog\/2010\/03\/03\/collection-of-your-accounts-receivable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Collection of Your Accounts Receivable - Barna, Guzy & Steffen, LTD.\" \/>\n<meta property=\"og:description\" content=\"By Joan M. Quade Spring 2009 In Brief Newsletter In these tough economic times, companies find that payments on their accounts receivable are delayed and diminished.\u00a0 More and more of their customers cannot pay on time.\u00a0 Some cannot pay the invoices in their entirety and have resorted to smaller, drawn out payments for services and goods, while others have not been able to pay at all. Money is less plentiful but if your customers do not pay, it affects your ability to meet your company’s obligations.\u00a0 In years past, most companies could afford some nonpaying and slow paying customers, but when many of your customers are having financial difficulties, your company must take action\u00a0 to ensure your own company’s survival.\u00a0 You have supplied the goods and services and you should be paid for those efforts. Ignoring your mounting accounts receivable could lead to your own company’s damage or demise. 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