Monday, July 18, 2011

Don't Let Past Due Accounts Go On Vacation

We're now into July, and many people are wrapping up loose ends and starting to think about their summer vacations. In the US, over 65% of the work force takes some vacation time between Independence Day and Labor Day. Vacations are fun. Vacations are escape. Vacations are rejuvenation. Vacations are also expensive. Everyone has been pooling their funds because they know that Disney will suck the money out like a vacuum.

Everyone spends way too much money, but they don’t stress about it. They tell themselves “Hey, I’m on vacation”. They don’t give the money spent a second thought. They don’t worry about it. Vacations are no worries. All worries are left at home. They’ll worry about those things when they get back . . . . . maybe.

Things like your past due bill.

The vacation mantra is “Eat, drink and be merry”.  The problem is that your debtors are going to be eating, drinking and causing merriment with the money that they owe you.   You’ve worked too long and too hard to stand idly by while your debtors spend your money (money that should be in your pocket NOT theirs) on $7.00 hot dogs, overpriced tacky doodads and novelty hats and t-shirts that are worn only once.

You need that money so you can buy all that stuff.  Think about your own schedule and your own office. During the summer, don't you find it more difficult to connect with others due to their vacation schedules?

Now is the time to be proactive about your collection efforts. Don't chase your slow paying accounts all summer long. You know the excuses - `We promised to take the kids to Disney' or `The person who signs the checks won't be back until next week`, etc. Take a long look at your aging report and do something now to get those accounts paid. Catch them before they head out and you fund a week or two of someone else's fun, rest and relaxation. Catch them when they have that big pool of vacation money.

It’s a win-win situation. You get your money back so you can better enjoy your own family vacation.  And you give your debtors one less thing to worry about when they get back from their trip. 

Brian A. White
Senior Cash Flow Consultant
Transworld Systems NGA WDDA

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