One thing many business owners dread is dealing with unpaid invoices and collecting money from customers. If you're lucky, your customers pay on time or as close to on time as possible. But chances are, you've come across or will come across an overdue account at some point in your life as a business owner. What should you do?

One of the first things to remember is that you don't want to burn bridges with your customers. Yes, you need to get paid, but you also don't want to generate ill will or bad publicity for your business. That's why knowing how to collect unpaid accounts without burning bridges is so important.

Try giving your customer a quick phone call or send an e-mail asking them if they need a copy of their last invoice or if they would like to make payment arrangements. Sometimes it really IS a matter of forgetting the due date or losing the invoice in a pile of papers. In this case, a friendly reminder call or e-mail might be enough to get paid and continue building your relationship with the customer.

If you've sent a friendly reminder and your customer still hasn't paid, or at least attempted to make a payment plan, you may need to send a more formal letter. Keeping a nonconfrontational tone, remind the customer that a payment is overdue and give information on what payments you accept (credit cards, checks, online payments) or the availability of a payment plan. Keep a copy of this letter for your records.

If you still receive no payment or no response from the customer, you need to send the letter via certified mail. Certified mail costs a little less than $5, but it helps you to prove that your customer received your letter. You'll fill out mailing information and the Post Office will have your customer sign the card upon delivery of the letter. You'll get a copy of the signature card to keep for your records. Don't throw this signature card away.

If you can't collect your payment even after friendly reminders, payment request letters, and a certified notice of late payment, you may have to file a claim to finally get the account paid off. You can do this in small claims court if it is not a large account and you don't need an attorney if you feel you can prepare your claim on your own. Follow the court's instructions for filing and be sure to respond to all court requests and correspondence in a timely manner. If a hearing is scheduled, be sure to take all copies of letters and invoices with you. Copies of e-mails can also be helpful in establishing a timeline for your claim.

Above all, conduct yourself professionally at all times. You may be trying to collect on a past due account, but there's no need to be nasty or get into an argument with your customer. If you conduct yourself as a professional, you'll have the satisfaction of knowing you took the high road on your way to getting paid.

To protect yourself from unpaid accounts in the future, take the following steps if they're appropriate for your business:

1) If you run a product-based business, don't ship merchandise until you've been paid.

2) If you run a service-based business, get a deposit before you provide any services.

3) Clearly state your policies regarding late payments on your Web site.

4) List a clear payment due date on each invoice you send to customers.