While many businesses are trying to return to a new normal after the impacts of the COVID-19 pandemic, some have opted to move to remote work for the rest of 2020. For paper-based A/R departments, this move has been especially challenging. Sending invoices and receiving checks are necessary components to maintaining working capital and cash flow but what happens when the employees responsible are no longer in the office?
When you think about your business reputation, you may be looking to customer testimonials or surveys to determine how well you're doing. Obviously, your branding and online perception is going to influence sales and ultimately your revenue. Another part of your business' reputation, however, is how you approach the financial aspects of your business.
Did you know that your accounts receivable collections can affect your business reputation?
COVID-19 cases are still increasing as the United States reopens and now the National Bureau of Economic Research has declared that the U.S. economy is indeed in recession. According to the announcement, the economy was heading into recession when the coronavirus hit and, as businesses were shutdown, any gains were erased during March and April. If you're a business owner or accounts receivable professional, you may already know that cash flow has been affected by the events of the past few months.
The good news is that cash management options are still accessible during an economic downturn, such as a recession. Read on to learn more.
If you regularly bill clients, you have likely had the experience of chasing down money. It's frustrating, uncomfortable and a little intimidating. Now add in a global pandemic, climbing unemployment statistics and the amount of small businesses closing shop and suddenly, asking for what's owed to you can be downright worrisome. Let's take a step back and consider a new way of dealing with outstanding or overdue invoices, shall we?
Here are five ways to help businesses deal with unpaid client invoices during COVID-19.
Cash flow is critical to any business, no matter its size. With poor cash flow management, even a profitable business can end up in bankruptcy. If the amount of cash coming in is less than what's being spent, businesses are unable to make investments or will need to borrow money to stay afloat.
Getting your invoices paid on time is essential to positive cash flow. Read more to gain an understanding of cash flow and how cash flow management impacts your business.
When the Small Business Administration announced a forgivable loan program in response to the COVID-19 pandemic, small businesses and independent contractors rejoiced. The only requirements to qualify for the Paycheck Protection Program loan are fewer than 500 employees and to have been in business by February 15, 2020. If your growing business is economically affected or you're a freelancer who has lost clients due to the pandemic, this program was made to help.
Learn more about how PPP loans will improve your B2B operations and accounting.
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.
In times of crisis, businesses can still expect client payments. Protect cash flow and revenue with these best practices.
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.
Here are the best business practices to get prompt payment from your clients.
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.
Setting invoice payment terms protects your business. Here's how.
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.