Stay on top of your Accounts Receivable (A/R). Just do this. It is far easier to stay on top of this than to catch up on it.
Have a system to flag any account that becomes delinquent almost immediately.
Delinquent A/R will destroy your cash flow. If you already have itty bitty margins, you will really struggle with your ability to keep things moving. If I don’t get paid back for the time and capital it took to provide products and services this month, I won’t have the capital to provide those products and services to customers next month.
And it will cost you money to chase that down.
If you have someone in the office who is dedicated to billing, and he or she is spending 20% of their time chasing delinquent A/R, and they are making just $15/hour, you are spending at least $6240 a year chasing delinquent A/R.
The solution is so very super simple. Chase it immediately. If you (by a lack of action) make it seem like your terms are flexible, your customers will think that they are.