Tax season is here, and for businesses with outstanding receivables, it can be a prime opportunity to recover past-due balances. Many consumers receive tax refunds, which often provide them with the financial flexibility to settle debts they may have been unable to pay earlier.
At Aldous and Associates, we understand the connection between tax season and collections and how businesses can use this time strategically to improve recovery rates. Here’s what you need to know.
Why Tax Season is a Key Time for Debt Collection
Millions of Americans receive tax refunds, with the average refund amounting to several thousand dollars. For many consumers, this extra cash is used to pay down outstanding debts, making tax season a critical time for businesses looking to collect on delinquent accounts.
Here’s why tax season presents an opportunity:
- Refunds provide available funds. Many people who have been unable to pay past-due balances now have the means to settle debts.
- People prioritize debt during tax season. Some individuals use refunds to clear financial obligations and improve their credit.
- A well-timed reminder can encourage repayment. A simple outreach during tax season can prompt customers to resolve their overdue accounts.
Best Practices for Maximizing Collections During Tax Season
If your business is carrying outstanding balances, now is the time to act. Here are a few ways to make the most of this season:
- Offer Payment Reminders at the Right Time
Customers may not be thinking about their past-due balances when their refund arrives. A well-timed notice, email, or text message reminding them of their outstanding balance can prompt them to take action.
- Highlight Flexible Payment Options
While some customers can pay off their entire balance with their refund, others may only be able to make partial payments. Offering structured payment plans can increase the likelihood of repayment.
- Use a Professional Approach
Your messaging should be clear, professional, and understanding. Avoid aggressive tactics—many people are more willing to settle debts when approached respectfully and with options for resolution.
- Leverage Tax Refund Timing
Tax refunds start rolling out in February and peak through April. If you haven’t already, now is the time to communicate with delinquent account holders.
How Aldous and Associates Helps During Tax Season
Our team at Aldous specializes in strategic debt recovery, ensuring businesses collect more without damaging customer relationships. We:
- Use compliant, professional communication methods.
- Offer automated and manual outreach to customers.
- Provide customized payment solutions that encourage resolution.
- Work with businesses across industries to increase recovery rates during tax season.
Don’t Miss the Window—Act Now
Tax season offers a unique opportunity to recover past-due accounts, but the window is short. If your business has delinquent accounts, now is the time to put a strategy in place.
At Aldous and Associates, we can help you maximize collections during this critical season. Contact us today to discuss how we can help you recover more while keeping customer relationships intact.