When is the last time you looked at your accounts receivable aging report?

Many small businesses that are profitable on paper often struggle for cash, and a frequent culprit for this is a pile of overdue payments from clients/customers. Remember, sales do not equal cash! Making a sale and collecting payment are two distinct business activities.

I know it can feel icky to contact clients about past-due amounts, but your business can’t survive without taking care of collections. Depending on the nature of your business, it may be worth asking for payment up front so you don’t find yourself in this situation.