Collections

Collections is the process of obtaining payment from customers who owe a business money, especially when an invoice is past due. Its main functions include:

• Tracking overdue accounts: Review unpaid invoices and how long they have been outstanding.
• Contacting customers: Send reminders and follow up by phone, email, or letter.
• Resolving payment issues: Investigate disputes, missing invoices, billing errors, and short payments.
• Arranging payment: Confirm payment dates or set up approved payment plans.
• Recording activity: Document customer conversations, promises to pay, and payments received.
• Escalating difficult accounts: Refer accounts for management review or further action under company policy.
• Reporting results: Track overdue balances and collection progress.

The goal is to improve cash flow by collecting valid debts promptly while treating customers professionally.