Credit Policy for businesses and how to extend credit and manage credit risk

A tickler file will help you to work smarter, not harder.  Everyone has "piles" on their desk, even I do. I know what every "pile" is for.  If you want to clear the clutter of piles, or losing or missing something a tickler file is for you. A tickler file is your organizational tool for successful follow up.

You can create a tickler file for paperwork and some computer programs have tickler files built in. If you use debt collection software, such as Abacus Totality or Collect! they have tickler files built in.

There are many different ways to set up a tickler file.  You can purchase an "Everyday file" at an office supply store. Or create your own with plain tabbed folders and an upright desk top file folder holder or letter holder or a file box.

What is a tickler file?

Your tickler file can be an open-sided accordion like file with 43 slots - 31 are numbered for the days of the month, followed by 12 slots labeled January thru December. The 1-31 slots are always used to hold papers for the current month; the 12 monthly slots are for future months. For example, during the month of April, the numbered slots hold papers for April, according to the day of the month when you'll act on each piece of paper. Every day, first thing in the morning, you remove the papers in that day's slot and also check the next few days' slots to see what's coming up.

When you are working and you have to follow up with someone on a payment promise on Friday, you might put a note or paper stating that into Thursday or Fridays slot. Then on Friday you will pull out all the papers in that folder and do that work for the day.

By the end of April the 1-31 slots should be empty, and ready to hold May's papers. Now you'll spend a few minutes doing the monthly ritual: Remove all the papers from the "May" slot, look at when they're due, and insert them into the appropriate 1-31 day slots. Directions to a meeting on May 8 are put into the 8 slot. Any follow up collection calls or set up payment arrangements that are due on May 14 go in the 14 slot. Some items should be put in early --a customer who said they would have payment in full to you on the 20th should go in the 10 slot - this gives you time to call and verify the check will be mailed, get a check number and amount. then you can send a confirmation letter and put this into the 19h slot so you an follow up on the day before the payment is due, this also gives the customer mailing time for thier payment.

The tickler file is designed for people who have a lot of time-sensitive follow-up activity, like bill collectors, which is why it is incorporated into most debt collection software.  Your  tickler file can hold anything on which you're awaiting a response, phone calls to return on specific dates, bills to pay (file them several days before the due date), decisions you must make by a certain date, such as reporting a debt to the credit bureau or small claims court hearings. 

The seconds it takes to drop papers into the tickler file is nothing compared to the hours it'll save you every week - and the stress it will spare you. You'll no longer waste time looking for papers or missing dates that you hae to follow up with calling or sending a letter to a debtor. You'll be on top of things because you can see what's coming up. You'll act on things before they're due, rather than at the last minute. You will be much more efficient.

Some things tickler files are commonly used to follow up on:

• papers you have to sign
• calls to follow up on
• bills
• payment promises
• payment plans or arrangements
• automatic payments, credit cards or checks you process automatically for customers