In the cash crunch that comes with a slowing economy, collecting from your customers is more important than ever. Take a critical look at your accounts receivable procedures to make sure you’re doing everything you can to keep the money flowing in.

In addition, your invoicing and payment system is one of your most important regular channels of communication with your customers, so look for ways the operation can make a positive contribution to improved customer relationships.

Here are some of the key steps to take in sprucing up your accounts receivable operation:

• Establish an effective method of credit investigation.
  
  
• Make payment and credit terms clear from the start.
  
  
• Bill customers on time.
  
  
• Be sure that bills are accurate.
  
  
• Display the due date prominently on the bill.
  
  
• Offer incentives for early payment.
  
  
• Make it easy for customers to get answers to billing questions.
  
  
• Post customer payments to their accounts promptly.
  
  
• Identify delinquent accounts quickly and initiate collection efforts.