Tighten-Up on Your Home Business Accounts Fort Washington MD

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.”

Carolyn Walder
Lifetime Wealth Planning and Management LLC
(703) 519-1254
120 Waterfront Street, Suite 410
National Harbor, MD
Expertises
Ongoing Investment Management, Financial Issues Between Generations, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®

Timothy Wesling
Wesling Financial Planning Services Corp.
(703) 535-8280
101 N. Columbus Street, Suite 402
Alexandria, VA
Expertises
Retirement Planning & Distribution Rules, Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Estate & Generational Planning Issues, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, AIF, CDFA, CFP®, CMFC

Lisa Kirchenbauer
Omega Wealth Management, LLC
(703) 387-0919
200 North Glebe Road, Suite 812
Arlington, VA
Expertises
Retirement Plan Investment Advice, Advising Entrepreneurs, Women's Financial Planning Issues, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, CFP®

Thomas Conway
Connemara Fee Only Planning, LLC
(301) 998-6595
1300 Pennsylvania Avenue, NW - 7th Floor
Washington, DC
Expertises
Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Investment Advice without Ongoing Management, Estate & Generational Planning Issues, Planning Issues for Business Owners, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, CFP®, JD

Claire Emory
Clarity Financial Planning
(703) 465-5116
1655 Fort Myer Drive, Suite 700
Arlington, VA
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Women's Financial Planning Issues, Retirement Plan Investment Advice, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®, MA, MBA

Carolyn Walder
Lifetime Wealth Planning and Management LLC
(703) 519-1254
211 North Union Street, Suite 100
Alexandria, VA
Expertises
Ongoing Investment Management, Financial Issues Between Generations, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®

Scott Walker
Alexandria Financial Associates, LLC
(703) 671-5959
4900 Seminary Road, Suite 105
Alexandria, VA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning, College/Education Planning, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®

Jeffrey Zures
Sanchez & Zures, LLC
(703) 349-0330
700 12th Street, NW, Suite 700
Washington, DC
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, College/Education Planning, Middle Income Client Needs, Estate & Generational Planning Issues, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA

James Ludwick
MainStreet Financial Planning, Inc.
(202) 448-9032
1425 K St. NW, Suite 350
Washington, DC
Expertises
Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Real Estate Investments, Retirement Planning & Distribution Rules, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, CFP®

Carroll Hayes
Charles Carroll Financial Partners, LLC
(703) 750-3600
4115 Annandale Road, Suite 205
Annandale, VA
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Charitable Giving - Trusts & Foundations, Real Estate Investments, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

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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