What should I consider when estimating and collecting receivables?

When estimating and collecting receivables as a small business owner in Massachusetts, there are several important considerations to keep in mind. First, it is important to accurately estimate the amount of money you can expect to receive in the future for goods and services that you have already provided. This will help you plan your cash flow and budget accordingly. It may be helpful to set up payment policies in advance for customers so that there is a clear understanding of the expectations for payment. In addition, it is important to have in place a system for collecting receivables in a timely manner. This can include setting up automatic billing, sending out invoices regularly, and even hiring a third-party collections agency to help with receivables. It is also important to be aware of laws that protect consumers in Massachusetts from unfair collection practices. For example, debt collectors are prohibited from engaging in certain behaviors, such as excessive contact with the consumer or using false or misleading statements in an effort to collect a debt. Finally, it is important to take action if a customer is unable to pay their invoice. This could include setting up a payment plan, offering discounts for early payment, or even taking legal action to recoup unpaid debts. This can help protect your business from any lost revenue and ensure that all customers are treated fairly and in compliance with Massachusetts law.

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What should I consider when estimating and collecting receivables?

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