Join the club. In today's real business world, accounts receivable, or A/R, are usually paid at a snail's pace. Hence the need for a receivables aging schedule, which keeps track of who owes the money, when the debt was incurred, and how long the debt has been unpaid.

A small business owner can utilize the receivables aging schedule to collect debts in three simple steps:

1. Commit to a consistent A/R process.
2. Calculate the collection time periods for the receivables aging schedule.
3. Use accounting software or other tools to keep the receivables aging schedule current.

Action Steps
The best contacts and resources to help you get it done

Tips & Tactics
Helpful advice for making the most of this Guide

• Be consistent: Send account statements to owing customers regularly.
• Offer Incentives: Offer a slight early payment or "cash price" discount to those who pay immediately, as well as including specific late payment fees on payments made past the due date.
• Follow up: The squeaky wheel gets the oil, as the saying goes, and the same is true of collecting funds due. If a customer promises a payment by X date, and you don't receive it, call again.
• Stay Updated: Make sure that you are as diligent in noting a customer's payment as you are noting his debt. Send him a thank-you note when the account is paid.