When the Cheesecake Factory and other retailers have announced that they will not pay rent, it can give pause to small and growing businesses who need their invoices paid. During such an unprecedented time, most everyone is feeling the panic and stress about potential loss of cash flow. It doesn't seem like a good time to ask for payment from clients or customers who may be facing their own crises.
For freelancers, startups and small business owners, the COVID-19 pandemic likely has impacted daily life and your business. Startup funding is drying up, employees are being furloughed or in general, we're all living in a state of uncertainty. You may be wondering if there's anything that you can do that could save your business during a crisis.
Our advice - Don't Panic! You may be better off than you thought.
During an economic downturn, it is not uncommon for accounting departments to notice an increase in DSO (Days Sales Outstanding). As receivables start to drift beyond payment terms, you’ll want to be sure your team is ready to act fast. Depending on the circumstances, the accounts receivable response may be varied from demand letters to payment plans.
Whether you're a freelancer, small business owner or employee, working from home can be quite an adjustment. It's easy to get distracted by laundry or other household to-do's and you're probably reading this because you know that already. With a couple of tweaks to your routine, you may find that you're more productive working from home than the office.
When a client hasn't paid their invoice on time, business owners feel the pinch in their cash flow. Even if sales are being won and the work is being done, without timely payments from their customers, vendors, accounts payable and employees go unpaid. It takes time and resources to chase down payments, affecting efficiency and productivity as well. Instead of wondering if your clients are going to pay their invoices, take control of the situation proactively and in a non-threatening manner.
Suing a client isn't top of anyone's list of things to do but if a client is refusing to pay, it may be the logical path to getting what's owed to you. Before you take your client to court, you'll need to make sure that you're prepared, have a good case and that it's worth the cost of your time and money.
As a business owner, you're dedicated to managing your relationships with your customers. You've agreed on the products or services that help their business and you've agreed how much they will pay your business. You may have also learned that you have to set boundaries with your customers, especially when it comes to paying their invoices. They need to know how much they owe, how to pay, who to pay and when payment is due.
When working a 9 to 5 grind has got you down, you may be considering how to start your own business. If you've been the expert at something in a corporate job, you could break into the business of speaking about it or even consulting to other businesses. Do you want to make money with your expertise, working on your own terms, and are you ready to get started?
Entrepreneurship starts when you decide what you're good at and how to sell that.
As an owner of a B2B business, or even if you work in accounts receivable for a B2B business, you know the headache of tracking down past due invoice payments. While it would seem that you've done everything necessary to prompt on-time payments, there's always that one client that pays late or not at all. If you've ever considered hiring a B2B debt collection agency, you might have questions about their processes to collect what's owed. What will they do for you? And most importantly, how much does it cost?
Whether you're a freelancer, contractor, startup or small business, tax season is the time of year that reveals any changes in your business over the past year. If you've not kept up with your income and expenses, tax season will kick you into gear. If you're unsure about write-offs, deductions or even how much tax you owe, tax season is the time to get informed.
