Set Targets and Priorities
Policy: - the company
boss should make it clear to all relevant staff that THE
COMPANY IS IN BUSINESS TO EARN CASH FROM CUSTOMERS and that A
SALE IS NOT COMPLETE UNTIL IT IS PAID FOR. All staff have a part
to play. For example, account queries are not low-level clerical matters.
They are complaints from unhappy customers who feel let down. They justify
non-payment and should be resolved in 7 days as prime customer service
priorities.
Timetable: - Every
business should have a timetable for following up accounts too small
to telephone economically, showing what to do and when, if the previous
action has failed. See example below.
Example of a Timetable for following up accounts
| Action to take |
Action date |
Days overdue |
| INVOICE |
8 June |
0 |
| STATEMENT (not yet due) |
3 July |
0 |
| DUE DATE |
28 July |
0 |
| STATEMENT (overdue reminder) |
3 August |
6 |
| POLITE REMINDER LETTER |
10 August |
13 |
| STOPLIST |
15 August |
18 |
| FINAL REMINDER LETTER |
24 August |
27 |
| COLLECTION AGENCY |
3 September |
37 |
| CASH RECEIVED |
10 September |
44 |
(Total time for revenue = 74 days)
|
