Why Past Due Accounts Are Killing You
We say it a lot, and we say it a lot because it’s true: at some point, every service based business will face the problem of past due accounts. It doesn’t matter if you’re a lawyer, doctor, architect, engineer, or other service provider. At some point, you’ll have to do something about delinquent clients. You can’t write off every account that becomes delinquent; no one can afford to work for free. Your past due accounts will kill you.
Past Due Accounts Create Stress
You’ve heard it said that if you choose to do something you love, you’ll never have to work a day in your life. It’s a good thought, but we’re fairly sure that the originator said that before ever dealing with someone who hasn’t paid. Even if you love what you do, past due accounts and collecting on past due accounts creates a lot of stress. If someone is delinquent and you’re collecting on the debts on your own, it can create stress on your professional relationship the next time you meet together. Then, there’s the stress caused by knowing that if you do the collecting on your own that you’ll either have to work longer hours or provide fewer services so that you can use that time to collect on past due accounts.
Past Due Accounts Require More Resources
You have three options when it comes to past due accounts. You can, as stated in the last section, collect on it yourself. That requires the resource of your time and attention. You can hire someone as an employee. That will take your time and attention for training. It will also take funds for salary and overhead. You’ll also want to make sure that you have the right understanding of debt collection laws; that will require more time to train with a professional and more money. You can outsource your first party collections. This doesn’t require any overhead on your part. It takes less of your time. It also costs less than hiring an additional employee.
Regardless of the course of action that you choose, you will be required to invest some amount of your resources. To find out how well your current processes and procedures used for first party collection are serving you, click here.
Past Due Accounts Affect Your Bottom Line
The long and short of it is that when people don’t pay you for services rendered, you make less money. We don’t necessarily just mean you have less profit. You just have less money in your business. That can also make it more difficult for your business to pay its vendors. At some point, you’ll consider doing what a lot of healthcare facilities do and raise your prices to try and compensate for the people who do not pay. Raising your prices can still have a negative effect on your bottom line. If people feel that they can get your service and the same quality for less money, they will go somewhere else.
Expert Assistance for First Party Collections
If you or your business is experiencing the stress, over exertion of resources, or negative effects caused by past due accounts, you qualify for a free process review. Find out how you can get expert assistance to assist you with your first party collections. Attorney's A.R.M. account managers have a minimum of 15 years of experience. We know the law and we know how to help you get the money that you’re owed.