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Tighten-Up on Your Home Business Accounts Topeka KS

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.”

Randy Clayton
Clayton Financial Services, Inc.
(785) 232-3266
716 S. Kansas Avenue
Topeka, KS
Expertises
Ongoing Investment Management, Advising Employee Benefit Plan Participants, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFP®, CLU

Mr. James N. Reardon, CFP®
(785) 215-8080
1414 SW Ashworth Pl
Topeka, KS
Firm
Peoples Wealth Management LLC

Data Provided by:
Mrs. Barbara J. Heller, CFP®
(785) 232-3266
716 S. Kansas Ave.
Topeka, KS
Firm
Clayton Financial Services, Inc.
Areas of Specialization
Asset Allocation, Charitable Giving, Comprehensive Financial Planning, Education Planning, Elder Care, Employee and Employer Plan Benefits, Estate Planning

Data Provided by:
Mr. Mark A. Schneider, CFP®
(785) 357-7777
112 SW 6th Avenue
Topeka, KS
Firm
Plan Professionals Inc

Data Provided by:
Ms. Linda G. Hauschild, CFP®
(785) 234-5573
534 Kansas Avenue
Topeka, KS
Firm
Mize Houser & Company, P A

Data Provided by:
Mrs. Elizabeth A. Young, CFP®
(785) 232-3266
716 S. Kansas Ave.
Topeka, KS
Firm
Clayton Financial Services, Inc

Data Provided by:
Mr. Keith A. Heckman, CFP®
(785) 354-5327
920 SW Washburn Ave Ste 102
Topeka, KS
Firm
VALIC Financial Advisors
Areas of Specialization
Employee and Employer Plan Benefits, Investment Management, Investment Planning, Life Transitions, Planning for Couples, Retirement Planning, Sudden Wealth Management

Data Provided by:
Mr. Nolan K. Patton Jr., CFP®
(785) 234-5573
534 S. Kansas Ave., Ste. 400
Topeka, KS
Firm
Mize Houser & Company

Data Provided by:
Mr. Denis E. Hill, CFP®
(785) 354-4342
534 S Kansas Ave Ste 1410
Topeka, KS
Firm
Hill Financial Services
Areas of Specialization
Investment Management, Long-Term Care

Data Provided by:
Ms. Lisa R. Manley, CFP®
(785) 221-4038
534 S Kansas Ave Ste 1300
Topeka, KS
Firm
Waddell & Reed

Data Provided by:
Data Provided by:

Tighten-Up on Your Home Business Accounts

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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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