Workflow Templates: Collections Management Checklist

Ensure there is a written collections policy that has been reviewed and updated within the last year.

Verify the collections policy is easily accessible to all relevant staff members.

Confirm that the policy includes clear guidelines on credit granting, billing, and the collections process.

Reconcile accounts receivable ledger with the general ledger regularly.

Review aging reports weekly to identify overdue accounts.

Monitor credit limits and customer payment histories to adjust credit terms as needed.

Initiate contact with customers with overdue payments as per policy timelines.

Document all communications with customers regarding overdue payments.

Evaluate the need for escalation to a collections agency or legal action for long overdue accounts.

Provide regular training to collections staff on negotiation, conflict resolution, and customer service.

Assess staffing levels to ensure adequate coverage for collections activities.

Implement performance metrics to evaluate the effectiveness of collections staff.

Develop standardized templates for payment reminders, overdue notices, and collections letters.

Implement a system for tracking customer communication and follow-ups.

Regularly review and refine communication strategies to improve success rates in collections.

Ensure payment processing systems are efficient and user-friendly for prompt customer payments.

Regularly audit the payment processing system for accuracy and compliance with payment industry standards.

Provide customers with multiple payment options to facilitate easier settlement of invoices.

Collections Management Checklist