I’m sure I’m not alone when I say that outstanding invoices are one of the most frustrating aspects of owning your own business. Most of you in practice for yourselves can speak volumes on the frustration of weeks dragging on to months and repeated promises that the proverbial “check is in the mail.”
We’ve all been there.
In fact, this weekend, during a conversation with my long-time landscaper, he complained that one of my neighbors hasn’t paid him in nearly two years. TWO YEARS. My first question to him was why does he continue to service her lawn? I can safely say that after six months I would have cut my losses (pardon the bad pun) and try and recover what I could in small claims court.
But I digress.
I’m sure you’ve all encountered clients that are shall we say, a bit sluggish in opening their checkbooks. The alligator arms-deep pockets image will fit nicely here. For example, many CPA firms that I’ve spoken to will not send a client’s 1040 until they receive full payment. If they don’t then by law the preparer is required to return all documentation to a deadbeat client and wish them best of luck in completing it.