Many companies find themselves in the situation where sufficient work in process is recorded and billed, but never collected. Often the majority of a company's outstanding accounts receivable debt falls within the "over 120 days old" category. Once the company's debt reaches this aging category, it becomes very difficult to collect.

Virtual Administration can help the company implement the appropriate accounts receivable management techniques encouraging the timely collection of this debt as follows:

Encourage smaller, frequent, billings: One of the easiest means of encouraging collection is to generate smaller, frequent bills, rather than producing a single invoice due at the completion of a project or case. For example: Clients find it easier to pay twelve $500 invoices over the course of a year rather than a single $6,000 bill at years end.

Encourage use of reminder notices: Once per month send reminder notices to all clients maintaining a balance due. The statements shouldn't be nasty, but should inform the client that they received a service from the company and the company expects payment.

Encourage direct communication with delinquent clients: Once a clients accounts receivable debt reaches 60 days old, it's important for the professional to have direct contact with the client addressing the issue of payment.

Encourage the use of retainers: Prior to providing service to new clients, request a retainer which may either be applied to future bills, or held until the completion of the project or case. If the client is unable to provide a retainer for services rendered, there's a high likelihood that their debt may become uncollectible.