Tighten-Up on Your Home Business Accounts Columbus OH

With the current economic crisis, are your customers stretching out their payments or disappearing without paying off their debt to you? If so, it’s time to review the basics and art of collecting accounts receivable without damaging customer relations. First of all, remember the cardinal rule, “It’s your money and you needn’t be bashful about seeking prompt payment for your goods and services.”

James Budros
Budros, Ruhlin & Roe, Inc.
(614) 481-6900
1801 Watermark Drive, Suite 300
Columbus, OH
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, ChFc, MBA, MS

Joel Oles
The Sherrington Group
(614) 485-2000
1328 Dublin Road, Suite 410
Columbus, OH
Expertises
Tax Planning, Planning Issues for Business Owners, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, BA, CPA/PFS

Richard Caw
The Sherrington Group
(614) 485-2000
1328 Dublin Road, Suite 410
Columbus, OH
Expertises
Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Planning Issues for Business Owners, Ongoing Investment Management, Helping Clients Identify & Achieve Goals, High Net Worth Client Needs
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®

Jill Gianola
Gianola Financial Planning
(614) 340-0770
2094 Tremont Center, Suite 4
Columbus, OH
Expertises
Middle Income Client Needs, Newlyweds & Novice Investors, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, MBA, MS

John Sestina
John E. Sestina and Company
(614) 326-3077
1161 Bethel Road, Suite 201
Columbus, OH
Expertises
Advising Medical Professionals, Professional Athletes or Entertainers, Estate & Generational Planning Issues, High Net Worth Client Needs, Helping Clients Identify & Achieve Goals, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, ChFc, MSFS

Peggy Ruhlin
Budros, Ruhlin & Roe, Inc.
(614) 481-6900
1801 Watermark Drive, Suite 300
Columbus, OH
Expertises
Ongoing Investment Management, Advising Medical Professionals, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, CPA/PFS

John Davidson
Kyleshill Financial Planning
(614) 395-1295
330 W. Spring Street, Suite 205
Columbus, OH
Expertises
Advising Entrepreneurs, Ongoing Investment Management, Planning Concerns for Corporate Executives, Planning Issues for Business Owners, Professional Athletes or Entertainers, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA, MBA

Carol Friedhoff
Savvy Outcomes
(614) 580-9926
2720 Airport Dr.
Columbus, OH
Expertises
Middle Income Client Needs, Newlyweds & Novice Investors, Cash Flow/Budgets/Credit Issues, Women's Financial Planning Issues, Advising Medical Professionals
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

Thresa Alexander
Alexander Financial Planning, Inc.
(614) 538-1600
1570 Fishinger Road, Suite 200
Columbus, OH
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Retirement Plan Investment Advice, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

Robert Reed
Reed Financial Planning LLC
(614) 263-3900
3763 North High Street
Columbus, OH
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Newlyweds & Novice Investors, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, PhD

Tighten-Up on Your Home Business Accounts

Provided By: 

When Times Get Tough, Receivables Get Tougher To Collect
By Richard J. Maturi

With the current economic crisis, are your customers stretching out their payments or disappearing without paying off their debt to you? If so, it’s time to review the basics and art of collecting accounts receivable without damaging customer relations. First of all, remember the cardinal rule, “It’s your money and you needn’t be bashful about seeking prompt payment for your goods and services.”

Timely Invoices and Billing Statements
The cornerstone of your accounts receivable system is providing timely invoices and billing statements. Every day you delay, is another day you don’t get your money. It helps to know your customers’ payment cycle. If they pay once a month on the fifteenth, and you send out your invoices on the 20th, you missed their payment cycle. By timing invoicing by customer, you may receive payment early, improving cash flow dramatically. If your receivables are large enough, a bank lockbox speeds up collections by eliminating the time it takes to process receipts in-house and deliver them to your bank.

Clearly Spelled Out Terms
Make sure your terms are clearly spelled out on invoices and billing statements. The invoice establishes the existence of the debt and should contain several key bits of information to prevent any confusion should conflict arise. First of all, date your invoice. This helps your customer determine when payment should be made based on the terms (net 30, 2% discount if paid with 15 days of invoice, etc.), which should also be prominently placed on the invoice. Know the current Dun & Bradstreet industry norms for payment cycles so you do not make your terms too stringent and thus lose customers to competitors with more lenient payment terms. Make sure you provide an accurate and complete description of the goods and services received by the customer. Inventory code numbers are great for your computer but mean nothing to the customer.

Accounts Receivable Schedule
Keep a pulse on billing activity and accounts receivable. Prepare an accounts receivable schedule by customer and payment due date. When the payment does not arrive on the expected date, make a friendly call to let your customer know you appreciate their business and inquire what has delayed payment. This usually gets the check in the mail. It lets customers know that you expect payment on time and are not the one who will let things slide. It’s also a good tool to help determine if a particular customer is experiencing financial difficulty. If so, you might try to work out a payment schedule that satisfies both of you. Working with your customer through a rough patch, may make them a faithful customer for many years.

Solving Problems
Ask when you can expect payment or if there is anything you can do to help move payment along. If any problems exist, now is the time to get them solved. It may be as simple as faxing a c...

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