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.
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.
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.
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.
If this blog is anything, we hope that it's helpful to small and growing businesses. Our focus is intended to offer education on getting organized, retaining clients and ensuring that your invoices are paid in a timely manner.
We've reviewed the most popular blog posts and topics so that we can bring more of the same to our readers. If you have any suggestions, please leave us a comment so we continue bringing you helpful tips to employ in your business.
The weather has turned colder, holiday shoppers are looking for gift ideas and your Accounting team is cleaning up year-end finances. It's during this time of the year that they're taking a closer look at unpaid accounts receivable invoices and deciding what to do. Before taking a financial loss, there may still be an opportunity to collect on some outstanding accounts. Read on to determine what to do next.
When a client owes you money, any interaction can be strained or even awkward. You want to maintain a good quality business relationship but you also have to talk about money... and that can be an uncomfortable conversation. While there are no guarantees that your clients will always pay on time, there are some things that you can do to get them to pay faster.
Is the United States headed for a 2019 recession? According to economists, the risk is high though there was strong financial growth in the first half of the year. Even the whisper of a recession can trigger business owners with even the strongest constitution.
Do you know if your business is recession-proofed or prepared? Do you feel secure that you can continue operating in an economic downturn? Here are some steps you can take now to feel better about the future of your business.
Collecting on your accounts is part of normal, healthy accounts receivable management. When invoices or accounts aren't paid on time, however, your business should have a documented process for collections. Your payment terms and collections policy will be clearly stated on your contract agreements and on your invoices.
Within this post are best practices for contacting your accounts, when, how often and by what means. Read more to build out a collections checklist and workflow for debt collections.
If your business struggles regularly with cash flow, there could be a number of reasons why. It may be internal processes that aren't being followed or aren't working. It may be external reasons such as the market or something else altogether. In order to make any changes, you first have to determine the root cause. Instead of scratching your head and getting more stressed...
Answer these questions to address the cash flow challenges of your business.
