Look at industry-specific billing software that is targeted to your type of business. If none is available, consider having proprietary billing software that meets your exact needs developed. While there is some expense associated with putting an efficient billing system in place, it will more than pay for itself in terms of accelerated cash flow. In some cases, money owed to your business will never be collected and can safely be written off as bad debt. In other cases, however, the debt owed is collectable.
Some businesses write off money owed by customers after little attempt to collect it.
Some customers simply get themselves into a short-term financial pinch and are telling the truth when they indicate they will pay the amount owed once those problems are cleared up. It is important to keep subtle pressure on these customers so they know you are serious about collecting what is owed you. Another way to approach what appears to be an obvious bad debt is to attempt to settle for less than what is owed. Too much time spent on personal phone calls, extended breaks and lunches, slowness in work and visiting too much among co-workers are all things that should be addressed swiftly. An employee must understand the expectation of hard work.