Who should follow up late payments in my business?

Should the account manager or a separate accounts receivable person follow up late payment in order to protect the business relationship?

It is often suggested that the management of accounts receivable should be handled by the accounts department and that client facing account managers should not get involved. However, when considering the most appropriate way to manage accounts receivable the business owner / executive needs to consider a range of issues, including:

  • Their relationship with the customer. In some instances the account manager's relationship with the client may assist in recovering outstanding invoices.

  • The size of the business. Some SMEs don't have a dedicated accounts receivable team.
    Ultimately, the decision comes down to having a detailed understanding of your customer's business and an appropriate process in place to manage any issues.

For more Cashflow advice click here »

D&B's new book, Dun & Bradstreet's Guide to Cash Flow and Credit Risk, provides expert advice for SMEs on improving cash flow and reducing bad debt. It provides hints and tips on a range of issues including: developing and implementing a credit policy; managing receivables; credit management for overseas customers; and using credit data in your marketing.

Read the Introduction of D&B's Guide to Cash Flow and Credit Risk »

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