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Tighten-Up on Your Home Business Accounts Savage MN

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.”

Daryl Goughnour
DRG Financial Services, Inc.
(952) 892-1121
14051 Burnhaven Drive, Suite 120
Burnsville, MN
Expertises
Retirement Plan Investment Advice, Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, EA, MBA

Bruce Primeau
Summit Wealth Advocates, LLC
(612) 987-9112
5871 Crossandra Street SE
Prior Lake, MN
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, High Net Worth Client Needs, Planning Concerns for Corporate Executives, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CPA/PFS

Janet Stanzak
Financial Empowerment, LLC
(952) 646-0026
450 American Blvd. West
Bloomington, MN
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, Planning Issues for Business Owners, Women's Financial Planning Issues, Tax Planning, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

Christopher Revak
Christopher R. Revak, LLC
(952) 583-4588
7760 France Avenue South
Edina, MN
Expertises
Divorce Planning, Estate & Generational Planning Issues, Women's Financial Planning Issues, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CPA/PFS

Dana Hornquist
Hornquist Financial
(952) 856-4896
3601 Minnesota Drive, Suite 800
Edina, MN
Expertises
Ongoing Investment Management, Planning Issues for Business Owners, High Net Worth Client Needs, Advising Medical Professionals, Hourly Financial Planning Services, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, BA, CFP®

Robert Steffen
Robert Steffen & Associates
(952) 884-7700
9801 Dupont Avenue South, Suite 360
Bloomington, MN
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, High Net Worth Client Needs, Advising Medical Professionals, Estate & Generational Planning Issues, Socially Responsible Investments
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Edward Schrotenboer
Ednomics Financial, LLC
(952) 888-3834
801 W. 106th Street, Suite 212
Bloomington, MN
Expertises
Tax Planning, Retirement Planning & Distribution Rules, Middle Income Client Needs, Ongoing Investment Management, Hourly Financial Planning Services, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Kimberly Schwichtenberg
Silveroak Wealth Management, LLC
(652) 896-5700
7650 Edinborough Way, Suite 250
Edina, MN
Expertises
Ongoing Investment Management, Advising Employee Benefit Plan Participants, Estate & Generational Planning Issues, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CPA/PFS

Kathleen Longo
Accredited Investors, Inc.
(952) 841-2222
5200 West 73rd Street
Edina, MN
Expertises
Women's Financial Planning Issues, Helping Clients Identify & Achieve Goals, Charitable Giving - Trusts & Foundations, Advising Medical Professionals
Certifications
NAPFA Registered Financial Advisor, CAP, CFP®

Thomas Alf
Clerestory Advisors, Inc.
(952) 405-2070
3300 Edinborough Way, Suite 550
Edina, MN
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Planning Issues for Unmarried & Same-Sex Couples, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, CDFA, CFP®, CPA

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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