MLS 2026 Fully Integrated Accounting > Accounts Receivable

While MLS 2026 provides the tools to manage Accounts Receivable, the decision to extend credit is a business decision, not a system requirement.

These guidelines are intended to help you decide when offering credit makes sense—and when it may create unnecessary risk.

Most Credit-Worthy Clients Already Have Payment Options

Customers with strong credit histories typically have access to credit cards and prefer using them. They have already demonstrated their ability to pay on time.

Extending in-house credit to these clients often:

•Provides little benefit to your business

•Delays your cash flow

•Adds unnecessary administrative work

In most cases, it is better to accept payment at the time of service.

Your Invoice May Not Be Their Priority

When clients manage multiple bills, they naturally prioritize some over others. A service invoice—especially a smaller one—can easily be delayed.

Reducing the number of open accounts:

•Improves cash flow

•Reduces collection effort

•Keeps your operation simpler

Community Relationships Can Justify Limited Credit

In smaller communities, long-standing relationships still matter.

Some clients:

•Are well known

•Have a consistent payment history

•Expect to maintain an “open account”

If your cash flow allows, extending credit to these individuals can:

•Strengthen customer loyalty

•Encourage repeat business

•Generate referrals

Use judgment—but remain consistent.

Business Accounts Often Expect Monthly Billing

Many commercial clients prefer consolidated billing rather than paying per visit.

This is common because it:

•Simplifies their accounting

•Matches their internal processes

Before extending credit to a business:

•Verify payment history

•Watch for patterns of slow payment

•Do not assume financial strength equals prompt payment

Some businesses manage accounts well—others do not.

Make Credit the Exception, Not the Rule

As a general rule, extending credit should be limited.

Credit increases:

•Administrative workload

•Risk of non-payment

•Time to collect revenue

When Credit May Be Appropriate

Consider extending credit only in these situations:

•Established commercial accounts with strong payment histories

•Long-term clients with proven reliability

•Trusted community relationships

When to Avoid Credit

Avoid extending credit when:

•The client is new or unknown

•Payment history is inconsistent

•Cash flow is already tight

•There is any hesitation about repayment

Bottom Line

Whenever possible, collect payment at the time of service.

Accepting cash, check, or credit card: