This is an excerpt from a monthly report to one of our clients.
* Follow up is too slow
* Please consider allowing reminders to be sent earlier than they currently are.
To explain: The firm grants clients a period of 14 days within which to pay. This is clearly stated on all fees received by clients. A fee raised on 30 January, therefore, should be paid on or before 14 February. Under present circumstances, however, a reminder would not be sent to such clients until 15 March (approx) – 4 weeks later than it was supposed to be paid! In other words, 42 days (approx) after the date that the fee was sent. The firm is “training” clients to pay later than we ask!
Please consider accepting the following change:
* 14th of the month following – “Permission Please” emails circulated to all Partners
* 21st – reminders sent (emails or letters)
Where this change has been made elsewhere,
* Few clients noticed any change at all! Those that were going to pay paid anyway but, more importantly, those that were not going to pay were reminded much earlier.
* Partners were still able to withhold permission, several stated on their “Permission Please” email when reminders could be sent.
* This simple change helped to arrest the ‘drift’ of accounts from current to 90d+ which was reflected in the reported results several months later.
This alteration has always been effective elsewhere because the “fast” money in all businesses is always generated from new invoices raised. Easiest to collect and trains clients to pay more closely to trading terms.