Texas Business Law Blog

The Associated Press and the San Antonio Express-News recently ran an article regarding problems that many small businesses nationwide are having to deal with regarding late payments for products or services rendered. Joyce M. Rosenburg, the article's author, points out that as a result of the recent economic slowdown, more and more small businesses are dealing with increasingly late payments from their customers or clients.

The article highlights as one example the economy's effect on the independent contractor. As an example, the article refers to a Florida based publishing company whose "late payers tend to be people who work as independent contractors for companies that, because of the uncertain economy, suddenly decide to end the relationship." Because "the independent contractor isn't getting paid anymore" they are having a hard time paying their own accounts payable.

The article puts forth some good advice for small businesses to cope and deal with accounts receivables. The article cites Roberta Bernhardt, a partner with the accounting firm Citrin Cooperman, who states that "small businesses need to have a systematic method of billing and a timeline for following up if an invoice hasn't been paid."

If you or your business is having trouble collecting on an outstanding business account, our business attorneys may be able to help. To set up a consultation with one of our business lawyers, contact our Austin, Texas based law firm.