As we've said before, time is money. With that in mind, the last thing you or your sales reps want to do is spend time with a client who:
Timing is also everything. Your salespeople need to be able to identify if the client meets all of your qualifiers and is ready to buy.
Yesterday, the LA Times reported "'Work from Anywhere'" is Here to Stay" noting that tech companies are leading the way to making remote work permanent for their employees. IBM's CEO also stated that even with a predicted COVID vaccine, remote work would continue. It's not a surprise that for technology or digital marketing companies, remote work will be the norm, even after the pandemic. What was a bonus for employees before, has now turned into cost savings for these businesses.
Small businesses and startups must think on their feet, and that includes getting their accounts receivables paid quickly. Business relationships are an integral part of the success and growth of these companies. Protecting these relationships should be a part of the collections process as well.
The pandemic has unfortunately hit many businesses right where it hurts. Economists have discovered a current proliferation of businesses who may actually already be "dead inside". Zombie companies earn just enough money to scrape by, acquiring more debt along the way and relying on bailouts to keep going. The problem is that they're unable to afford the cost of the debt and are a high risk to investors. One small blip on the radar, a bad quarter or market event, and they're DOA.
It's frustrating when your clients aren't paying their invoices on time. When you find that they are actually "walking dead", it can be downright terrifying.
In the age of social media and rapid-fire news stories, it's important for businesses to consider their brand reputation. If your accounting team outsources its bad debt or unpaid receivables to a collections agency, it's also important to protect your brand. Quite simply, a negative experience with a collections company could sour business relationships and your branding.
When you're trying to learn more about your business finances, a cash flow statement is a must. This financial statement paints a clear picture of how your business is managing its cash to pay debts and fund operations. The cash flow statement can help determine the success of your business and be an important indicator of potential to an investor.
Communication, especially in the time of remote work and virtual meetings, has never been more important. As a freelancer, agency or business owner, you may also feel distracted or overwhelmed when juggling work, clients and working from home. If you've found client communication especially challenging recently, we've created a few example scripts that we hope will help you.
Does your business suffer from late paying customers? Are you a flying-by-the-seat-of-your-pants A/R department of one? Do your clients get away with paying your business late or not at all without any consequences?
If you answered 'yes' to any of these questions, an accounts receivable collections policy can help you:
Get paid on time
Organize your accounts receivable process so you can handle the job alone
Feel like you have some power if your invoices aren't paid
A recent report by Freelancer.com revealed that freelance jobs increased over 25% in the 2nd quarter of 2020. With the continuation of uncertainty in the pandemic, employers are looking for a more flexible and remote workforce, even replacing some full-time positions with independent workers. Striking out on your own can be daunting but it can be done, and quite successfully.
For this post, we turned to the freelancers on Twitter to learn some hard-earned advice.
Whether you're working for an company or on your own, the thought of saying 'no' to a client can be panic-inducing. It can be especially stressful if you're starting your own business or trying to grow your new business. The good news is that there are particular situations that actually call for a resounding negative response. When you say "no," you can feel like you're doing what's right for you and your business.
