Revenue Collection: All You Need To Know

Revenue collection frequently refers to a government agency billing the public or a member of the public for fines, taxes or any other fees. However, revenue collection is also the general collection of revenue for debts owed or owed revenue by persons or businesses.

Who needs revenue collection?
While revenue collection is mainly associated with government agencies, it is also essential for businesses as a means to collect revenue for any kind of owed asset. Anyone or anything that is owed money needs revenue collection.

Government Agencies
When talking about government agencies, revenue collection means collecting outstanding financial obligations from the public. Those financial obligations can come in a variety of sources—taxes, license fees, fines or use of state facilities.

Businesses
When it comes to businesses there is another, more familiar term: accounts receivables. It is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. It often refers to accounts a business has the right to receive revenue on because it has delivered a product or service—essentially the definition of revenue collections.

Why is revenue collection often difficult?
There are a plethora of reasons why revenue collection can be difficult, especially in rapidly growing markets. From personal information changes, to lack of funds and information. Here are the most common issues your business may encounter:

Personal information changes
People may try to change their address or phone number as a way to avoid paying a debt they owe. People will also fail to communicate change of information.
Lack of funds

Insufficient or lack of funds to repay a debt is often an obstacle in revenue collection. Try to accommodate with a smaller project or spreading invoices out. If this happens often, your company needs to do more customer vetting.
Lack of information
Inadequate or incomplete information can lead to delinquent churn. If someone enrolls in your service with a credit card that expires, but no contact information, that will inevitably cause difficulties within your revenue collection. Without the proper information, resolving the matter can be extremely difficult, if not irreparable.

Leave a Comment

Your email address will not be published. Required fields are marked *