Question

Please write 4 paragraphs with each paragraph containing 50-60 words.

5. What are the methods used to collect accounts receivable?

Answer 1

The following are the techniques used for collection of account receivables from the customers.

1. Issue dunning letters or emails for the customers as remainders to pay the amount. The wording can be in the form of mild reminder for the payment. Some companies use series of communication on timely intervals to communicate regarding the payment reminders for the customers. The wording can be at times sterdy also.

2. To involve sales staff directly with the customers for collection of accounts receivables. The sales staff has to ensure that right customer relations have to be maintained with them so as to ensure smooth transactions of accounts receivable between sales staff and the consumers and to receive timely payments also.

3. Involve law firm also during account receivable transactions with the consumers. This will create an impression among the consumers that strict legal action will be taken if amount is not paid on right time. Start issuing notices to the consumers using law firm letter heads to make them understand the severity of the case.

4. The account receivable total amount can be divided into small groups, and ensure that highest invoice amount receives much attention continously. This makes the company to constantly keep effors for collecting the accounts receivable avoiding overdue of payments in bulk from the consumers.