Your aged receivables matter a lot. Think of them like a health check for the finances of your organisation. Any money sat in there is not where it should be, in your bank account. It can also suggest a cultural problem where your customers don’t feel the need to pay promptly, and there may be little consequence for not paying on time or having their details set up correctly for direct debits.
To put it into perspective, have you ever china rcs data missed a credit card bill, or your council tax? You can be sure that within a matter of days you’ll be receiving increasingly urgent communication to make sure that you pay the bill. Those organisations obsess over their aged receivables because they’re crucial to their day-to-day operations, so they can’t afford to be relaxed around people owing money for an extended period.
Whilst that is the extreme end of the spectrum, and we don’t recommend sending emails or text messages within hours of a customer not paying their monthly membership, the principle of tracking what you’re owed religiously remains. It’s your money after all.
How do I deal with them then?
Now we’ve established just how important these can be to the running of your organisation, let’s pick apart how we can deal with them in a productive way. LoveAdmin’s Aged Receivable report is the best place to start. Here, as we’ve discussed, you get a clear view on who owes what, and how long they’ve owed it for.