As a CPA helping business clients, I am constantly discussing how positive cash flow is vital to their business. Accounts Receivable is harmful to their business both in potentially needing cash to run the business and having to spend time and effort in collecting.
In my business, my associates and I are constantly working to make sure we manage positive cash flow well and to decrease effort needed for this. To that end, we have customized a system for automatic billing. For example, my client may sign on in November for business income tax return preparation during February, as the return is due in March. We will collect a credit card that they will use to pay our fees. Our system will automatically bill the client and charge the credit card to collect the fees on a date that the client has agreed to, such as February 1. We will then prepare the business tax return and will not have to put any more effort into this payment process.