As the global economy has slowed due to the coronavirus pandemic, uncollectible client fees, as well as the number of days that client balances are outstanding, have increased dramatically.
Developing a clear communication strategy while addressing the outstanding debt is key for maintaining trust with your clients. A few best practices that you should consider while doing this are:
• Communicate frequently with your client on open accounts and receivable balances
• Work out payment plans, with an occasional reminder that clients need to stick to their promises
• Allow for installment payments
• Seek counsel in more dire situations
• Never split the difference
– Mike Belfer, Partner and Co-leader of the Public Relations and Advertising Group & Martin Arking, CPA/Tax Leader, Anchin, Block & Anchin LLP