As a New York commercial debt collection attorney, my clients ask how often they should run a bad debt aging report (an accounts receivable aging). If the client is selling on terms the answer is often, very often, perhaps even daily. The client should be aware of the amount owed and be able to identify who owes the monies.
Factors to consider while reviewing the report: the total number of customers owing money, the average owed, the total owed as compared to budgeted bad debt, the impact of the uncollected invoices on revenue, the percentage of unpaid receivables compared to total sales, invoices days out (days past due) broken down by 30 day intervals, the receivables’ overall effect on sales.
The data in the receivable report allows you to:
- Forecast the monies that will be paid to you,
- Identify the aged receivables that need to be dealt with right away,
- Identify patterns and similarities of the receivables to reveal possible breakdowns in your business process.
If you need help managing and/or collecting your receivables, contact this NYC commercial debt collection attorney.