Managing Your Accounts Receivable

If you do extend credit, you should do an aging at least monthly to track how much of your money is tied up in credit given to customers and to alert you to slow payment problems. A receivables aging looks like the following table:

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You will need a policy for dealing with slow-paying customers:

• When do you make a phone call?
• When do you send a letter?
• When do you get your attorney to threaten?