Tighten-Up on Your Home Business Accounts West Warwick RI

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.”

Rebecca Preston
Preston Financial Planning
(401) 421-1777
251 Olney Street
Providence, RI
Expertises
Middle Income Client Needs, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

Mr. Peter J. Alofsin, CFP®
(401) 885-1060
1300 Division Rd
West Warwick, RI
Firm
Capital Wealth Management, LLC

Data Provided by:
Mr. Paul J. Torti Jr., CFP®
(401) 354-9649
62 Crompton Avenue
West Warwick, RI
Firm
Torti Insurance-Close To Home Eldercare Advisory
Areas of Specialization
Budget Development, Comprehensive Financial Planning, Debt Management, Elder Care, General Financial Planning, Healthcare Planning, Insurance Planning
Key Considerations
Average Net Worth: $250,001 - $500,000



Data Provided by:
Mr. Donald C. Horne, CFP®
(401) 244-3200
117 Metro Center Blvd
Warwick, RI
Firm
Pioneer Financial Group

Data Provided by:
Mr. Joseph A. Medeiros, CFP®
(401) 921-0620
2348 Post Rd., OFC
Warwick, RI
Firm
Medeiros Financial Services, Inc.

Data Provided by:
Angela Thomson
Coastal Financial Planning, Inc.
(401) 727-8151
12 Breakneck Hill Road, Suite 100
Lincoln, RI
Expertises
Retirement Plan Investment Advice, Ongoing Investment Management, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BA, CFP®

Mr. William S Tuttle, CFP®
(401) 885-1060
1300 Division Road
W. Warwick, RI
Firm
Capital Wealth Management, Inc.
Areas of Specialization
Asset Allocation, Investment Management, Investment Planning, Securities

Data Provided by:
Mr. Stuart F. Latessa, CFP®
(401) 626-1039
821 Main St
East Greenwich, RI
Firm
Citizens Investment Services
Areas of Specialization
Asset Allocation, Education Planning, Elder Care, Employee and Employer Plan Benefits, Estate Planning, General Financial Planning, Insurance Planning
Key Considerations
Average Net Worth: Not Applicable

Average Income: Not Applicable

Profession: Not Applicable

Data Provided by:
Mr. Christopher R Di Fronzo, CFP®
(401) 244-3260
117 Metro Center Blvd Unit 2008
Warwick, RI
Firm
Pioneer Financial
Areas of Specialization
Comprehensive Financial Planning, General Financial Planning, Retirement Income Management, Retirement Planning

Data Provided by:
Ms. Rulla Nehme, CFP®
(401) 691-4145
935 Jefferson Blvd Ste 2000
Warwick, RI
Firm
Independence Financial Partners
Areas of Specialization
Asset Allocation, Business Succession Planning, Charitable Giving, Comprehensive Financial Planning, Education Planning, Elder Care, Employee and Employer Plan Benefits
Key Considerations
Average Net Worth: $1,000,001 - $5,000,000

Average Income: $100,001 - $250,000

Profession: Not Applicable

Data Provided by:
Data Provided by:

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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