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Entrepreneur helps companies take action on unpaid invoices

One of the greatest cash flow challenges facing solopreneurs and businesses with employees is collecting accounts receivables from customers.

Wolfgang says unpaid invoices are normally 10 percent of the total invoices sent monthly
Wolfgang Kovacek

Wolfgang Kovacek is a profit recovery specialist who provides a system to business owners that makes collecting outstanding payments an automatic task. He understands the pain of collecting invoices. He owned a web design company and was owed enough money that he had to lay off employees .

"I wasn't good in following up clients and when you let that go month after month, the problem builds and affects your business."

He says once a debt goes past six months due then it likely won't be collected.

The businesses that Wolfgang provides account receivable systems for include electricians, plumbers, medical offices, and membership-based organizations like gyms and private schools.

He offers these tips for company owners:

Tip 1 Get Additional Information for New Clients

He says get alternate phone numbers like a number for a spouse and home addresses to make follow-up as easy as possible.

Tip 2 Add the Cost of Collecting into the Original Agreement

Write in a sentence saying the cost of collecting will be added into the invoice.

Tip 3 Count on Collecting for more than 10 Invoices Sent Monthly

Wolfgang says companies that send 10 to 20 invoices per month need to count on 1 to 2 invoices, or 10 percent, being late and to plan on collecting those.

Tip 4 Send Notice Immediately

If your business has a net 30 day policy, then send a notice on Day 31 and don't wait.

He says a company with about $ 2,500 in accounts receivables will benefit from an automatic system with a small per account cost.

Business owners with questions on collecting can click here for Wolfgang's website and cash flow management topics.

His financial background includes being a specialist on the floor of the Vienna Stock Exchange, heading up the seven most heavily traded stocks of Austria for over seven years.

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