Depending on the type of customer or client, debt collections can look drastically different. Either can still be frustrating but one type of debt could actually be harmful to the overall business. Consumer-facing business, for instance, is more transactional. Businesses working together, exchanging goods or services, is likely part of a long-term relationship.
Unpaid invoices are the worst! While it's easy to react negatively to your late or non-paying clients, each invoice may require its own way of dealing with it. You can start proactively, including establishing a consistent invoicing process and following up as quickly as possible. However, if you're lacking the resources or your prevention strategy isn't working, it's time to try something new.
To inspire entrepreneurship in a community that is least likely to receive startup funding, we've shared inspiring quotes from Black entrepreneurs who've had to overcome hardships to achieve success. Some key findings in the research for that article included a diversity report that found that only one percent of venture-backed founders were Black. The U.S. economy benefits from Black entrepreneurs and investing in more Black-owned businesses will reap rewards for all Americans.
As part of setting up your accounts receivable department for success, it's important to define responsibilities, create job roles and policies to ensure things run smoothly. These roles and policies will include approving clients for credit, setting payment terms and approved methods of payment, invoicing procedures, and what to do if the client doesn't pay on time.
While individuals attempt to keep their New Year's resolutions, new and growing businesses can also prepare for the year ahead. By setting up for success in January and February, you and your business are getting ahead of the curve so the rest of the year runs smoothly.
Every year, we take a look back at the previous year's blog entries to learn more about what you, our readers, want to see. In 2020, we observed that our readers were interested in building out their own successful A/R departments and first-party collections efforts. We're here to help!
A new business takes time, dedication, and wearing lots of many hats. If you're growing your business and want to attract more capital, it's time to protect your cash flow. This free downloadable guide will help you discover how to prioritize your accounts receivable so you don't have to waste time chasing down payments.
Chasing down late payments is no one's idea of fun. Have you considered making it easier for your clients to pay what's owed to you? To protect your cash flow and increase working capital, it may be time to consider some updates to your accounts receivable and invoicing process.
As more people quit their jobs for better benefits and work-life balance, 32% of Americans have turned to entrepreneurship. Many entrepreneurs started their businesses alongside their full-time jobs, consulting or providing services to friends or businesses in their professional network. If you're looking to take the leap in the next year, allow us to offer some valuable advice and lessons learned.
If there's any solid business advice I could offer to anyone, it would be this: Always follow up.
For many reasons, a follow-up email or phone call is essential in achieving results. Often, however, some people don't feel comfortable reaching out again after a meeting, discussion or event. They're worried their ask is a chore or they're being too pushy. In fact, a friendly follow-up may just be what's required to seal the deal.
