SSMCOC Accounts Receivable Policy
The purpose of this policy is:
To guide staff on the appropriate actions that should be taken in the event a Member has not paid an invoice after the standard 30 days;
To ensure the Chamber’s financial statements correctly reflect all amounts owed to the Chamber;
To establish guidelines by which credit is extended to Chamber members on a consistent basis;
To manage the extension of credit by the Chamber;
To minimize the cost of collecting accounts receivable;
To maximize cash flow.
Members who pay on a monthly basis via a credit or debit card will be charged on the 1st day of the month. All other members are to be invoiced annually on the 1st day of July OR one year from their first anniversary of joining the Chamber.
The Chamber’s standard term of payment is 30 days from the invoice date. An extension of credit beyond the standard payment term may be granted under special circumstances.
Invoices shall be sent by email along with a letter stating the benefits of membership. Payment terms shall be stated on all invoices. Payment options for monthly automatic payment will also be identified.
Collection of Accounts Receivables for Membership Dues:
The collection of unpaid membership dues is the responsibility of the Membership & Business Development Leader in conjunction with the Administrative Services Officer. The following procedure is to be utilized under his or her direction to collect past due invoices for membership dues:
30 days past due: email a copy of the statement along with a letter explaining the benefits of membership, including a list of recent and upcoming Chamber activities. Contact the member to verify that they are receiving the invoices and to confirm the member’s contact information is correct. Verify and update the information.
60 days past due: send a copy of the statement to the member by regular mail and call the member to see if there is a problem that can be addressed. Mail, email or fax an additional copy of invoice, if requested.
90 days past due: send a copy of the statement to the member by regular mail or email and call the member to see if there is a problem that can be addressed. Mail, email or fax an additional copy of invoice, if requested. All future commitments and or sponsorships agreed upon between the member and Chamber shall be suspended until the account is brought current.
120 days past due: Send a copy of the statement along with a letter informing the member that as per the bylaws, they are no longer in good standing and that their membership has been suspended along with all privileges until payment is received or special arrangements and authorizations have been made to accommodate members Accounts Payable cycle. If special arrangements have not been made the letter shall clearly state that membership privileges that have been suspended. Call the member to address the problem and answer any questions.
180 days past due: Collect the terminated member’s card and ensure they have removed the Chamber logo from their website and all other communications. Change the terminated member’s status in to “Cancelled Member”. Report the terminated account to the Executive Committee at the next regularly scheduled meeting.
Collection of Past Due Invoices for all other Chamber Receivables:
The following procedure is to be utilized:
30 days past due: send a copy of the invoice and a statement with a hand-written request to pay.
60 days past due: Send the statement and call the member requesting payment.
90 days past due: Send the statement and call the member to discuss payment and see if there is a problem that can be addressed.
120 days past due: the account will enter the account receivable debt cancellation procedure.
A debt, whether for membership or other services rendered, will be cancelled when all collection actions, as set out by the Board, have been exhausted. The Executive Committee will approve the cancellation of any debt at a regularly scheduled meeting. A report of cancelled debts will be presented to the Chamber Board during a regularly scheduled meeting.
Once a debt is cancelled, and for future reference, a notation will be placed in the members’ account describing the occurrence.
Re-application for Membership
At any time after termination, the terminated member may re-apply for membership. Reinstatement must be approved by the Board of Directors and the appropriate one-year membership fee must be paid immediately. After one year the member can then choose to pay their membership dues on a monthly basis.
Communication of this policy
The terms and conditions of payment will be posted on the Chamber website, on all invoices and in the membership package.