The key to collecting on invoices in a timely way is in the title of this article: systems. A systematized collection process puts accounts receivable information at your fingertips. And customers learn that your invoices are a top priority if you can quickly reference their account when they call.

A subtle psychology is at work with a systematized approach. Managers and executives everywhere prefer to deal with companies that are businesslike. There is a respect and seriousness accorded such companies. Similarly, companies that come across as un-businesslike either because of unprofessional packaging or poorly performing products, for example, are taken less seriously.

Consequently, their invoices are taken less seriously, which means they can easily be shoved to the bottom of the pile, to be paid later when more cash becomes available. Those customers may get the impression that there won't be timely follow-up on the invoice, and it can lead to invoices being paid in 60 days, 90 days, or never.

But those companies that have systematized their collections systems come across as businesslike. Customers know that these companies are to be dealt with seriously. Their invoices get a high priority, and are paid more quickly.

There are four key elements to a systematized collection system:

1. Professional appearance. All correspondence should have a professional appearance, whether computer-generated or typewritten with your company's name and logo imprinted. The services provided and amount owed should be readily understandable, and the message about payment terms and expectations should be clearly written. Invoices that are hand-scrawled, with spelling or grammar errors, convey the impression that the business isn't professionally run, and need not be taken seriously.

2. Prearranged schedule. Timing is a key issue in the area of collections. Invoices that aren't paid on time have a tendency to be put off even longer. To combat late payment, your first step is to send invoices at the same time of the month or immediately after the service is performed. Then follow up every 15 or 30 days with statements or collection notices. This type of scheduled billing procedures conveys the professionalism and seriousness that leads to prompt payment.

3. Stepped message approach. Simply sending the same invoice with the amount due again and again isn't enough. The customers must be alerted to the fact that they are late in paying. The notices or correspondence you send must communicate that the invoices are seriously overdue, and reminded that you've sent a third or fourth notice. The tone of the message should become progressively more firm. If you collect interest on overdue amounts, the amount accumulating must be made clear.

4. Overall policy. Above all, your billing approach must convey the depth of your seriousness about collections, especially for customers who are being notably resistant. Show them that you have thought through the collection process and that you are prepared to follow through, whether it's by referring the account to a collection agency, loss of credit, and possibly even court action.

As you systematize your collections procedures, take into account that you may not necessarily treat all accounts receivable equally. You will want to pay special attention to customers owing large amounts of money. In those cases, consider supplementing your official billing approach with telephone calls at strategic times or to strategic people.

You may also want to compress the intervals between mailings to certain customers, such as new customers--to let them know early on that your company expects to be paid in a timely way. Include a personal letter or note with certain overdue notices, especially if you were promised prompt payment, to gently remind the customer that you are keeping track of the account.

As much as you systematize your billing procedures, you want to be able to allow for the human factor and variations among companies. Sometimes the key to getting paid is making sure the invoice gets into the right hands, or appears at the right time of the month.

The underlying system, however, will enable you to communicate your message to customers about getting paid. Your cash flow will improve, and your relationships with customers will be solidified: Those are the keys to long-term business success.