The issue of debt has become a topic of major discussion in the United States as of late. From the local to the federal level, communities and government agencies have struggled to balance budgets. According to the Congressional Budget Office, the federal government will report a deficit of $845 billion in 2013. The functionality of the United States government will not be greatly affected by these numbers, but many smaller communities do not have that luxury. The city of Martinsville, Virginia, for instance, has made budget cuts to many of its departments, programs and staff over the last few years. Reductions in law enforcement and fire department staff were made because of budget constraints, according to a government report. The Virginia Local Government Management Association found that 76 positions had been cut over the past two years, with upwards of 30 or more to follow through the end of the financial year.
One area in which the city could increase its revenue stream is by collecting overdue debts. The Martinsville Bulletin reported that the city had yet to collect on approximately $450,000 and $210,000 in utility bills and business license fees, respectively. According to city officials, the number of unpaid business license fees have been on the rise, possibly due to recent procedural changes that have focused less on taking delinquent account holders to court.
For organizations that struggle with collecting unpaid debts, employing credit collections software may be a viable solution. Government officials and company executives alike can track debt collection procedures and ensure that payments are being made on a timely basis. Sophisticated software can provide businesses and organizations with the resources to monitor every phase of collection management, from phone and email correspondences to invoicing. By utilizing these tools, businesses and agencies can greatly enhance their debt collection efforts.