Tighten-Up on Your Home Business Accounts Kingman AZ
Mon-Fri 08:00 AM-06:00 PM
Sat 08:00 AM-04:00 PM
Mon-Fri 09:00 AM-06:00 PM
Sat 09:00 AM-01:00 PM
Keats, Connelly and Associates, LLC
High Net Worth Client Needs, Estate & Generational Planning Issues, College/Education Planning, Tax Planning
NAPFA Registered Financial Advisor, BS, CFP®, CPA/PFS
Wealth Engineering, LLC
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Retirement Planning & Distribution Rules, High Net Worth Client Needs, College/Education Planning, Estate & Generational Planning Issues
NAPFA Registered Financial Advisor, BS, CFP®
Strategic Wealth Advisors, LLC
Women's Financial Planning Issues, Estate & Generational Planning Issues, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, Ongoing Investment Management, Divorce Planning
NAPFA Registered Financial Advisor, CDFA, CFP®
Banking Center Services: Commercial Deposits, Night Deposits
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Presson Financial Associates, LLC
Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Estate & Generational Planning Issues, Divorce Planning, College/Education Planning, Alternative or Private Investments
NAPFA Registered Financial Advisor, BA, CFP®
Strategic Wealth Advisors, LLC
Ongoing Investment Management, Advising Medical Professionals, Retirement Planning & Distribution Rules, Cash Flow/Budgets/Credit Issues, Estate & Generational Planning Issues
NAPFA Registered Financial Advisor, CFP®, CPA, MBA
Summit Wealth Management, Inc.
Advising Medical Professionals, Women's Financial Planning Issues, Professional Athletes or Entertainers, Planning Issues for Unmarried & Same-Sex Couples, Estate & Generational Planning Issues, Hourly Financial Planning Services
NAPFA Registered Financial Advisor, CFP®
Tighten-Up on Your Home Business Accounts
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.
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...