10 Things to Include in Freelance and B2B Contracts

In a Quora thread from last year, an owner of a software business shared the story about a client who stopped paying for their SaaS services.  After months of nonpayment and no response to follow-up notices, they closed his account. He later chose to sue the software company for closing his account and they went to court. Because their contract clearly stated that they could close his account due to nonpayment, they won their court case.

Freelancers, software companies and marketing agencies are examples of businesses that may work exclusively with other businesses. Because of the potential for litigation, B2B contracts are not only important, but necessary for protecting the interests of these companies.

Here are 10 things to include in every freelance and B2B contract.

Do You Have to Pay Taxes on Accounts Receivable?

One of the main reasons for hiring a professional to do your taxes is when you have questions or complex tax situations. For small businesses, freelancers or startup companies, there may not be an accounting department to handle things like invoicing or other accounts receivable tasks. When you're a department of one or someone who's only wearing the accounting hat temporarily, you may have some questions such as...

Do you have to pay taxes on accounts receivable?

How to Talk To Your Clients About Money

You've established a great rapport with your client. They love what you have to offer and you feel like they're a great fit for you. Now it's time to discuss how much they're going to pay for it. 

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Feeling a bit queasy about this part? Most people do. Beyond the understanding that you can ask for what you're worth, this is also the time to make it a natural and expected part of your business relationship. Because it is. 

Here's how to talk to your clients about money.

Free Small Business Resources for Accounts Receivable

When you're growing a small business, it can be overwhelming to take on tasks that aren't your strengths. After all, you started a business because you were good at something... and likely, that something wasn't invoicing or collecting accounts receivable. 

Making sales and making money are obviously necessary to grow your business. Instead of searching all over the internet for advice and sample templates, let us give you a head start.

Click on the links below to download our free resources. 

Why Your Business Needs an A/R Collection Policy

The purpose of your accounts receivable department is to invoice, monitor and collect payments for goods and services sold by your business. Your "accounts receivable" refers to any amounts due from clients or billings from any business transactions. While it seems simple enough, A/R can become quite complex when your clients aren't paying on time, your days sales outstanding (DSO) is too high or your accounts receivable turnover ratio continues to decrease.

When deciding on an A/R collection policy for your business, consider these questions.

Top 10 B2B & Accounts Receivable Blog Posts of 2018

The aim of the Enterprise Recovery Zenith blog is to inform, educate and support all who read here. Your clicks and comments determine what's important and how we can help. Within the top 10, we may also recognize trends and what's missing that we should cover in future posts.  Read on to see if there's something you missed this year.

Top 10 B2B and Accounts Receivable Blog Posts


Year End Accounting: Clean Up Your Books

Unless your business has a full-time bookkeeper or accounting department, your accounting records could be in a state of disarray. There could be inconsistencies and costly mistakes that could affect your business sooner than later.  Even with an accounting department, the end of the year is a practical time of year to tie up loose ends and reconcile your records. Making good business decisions, paying taxes and preparing for the future requires proper, accurate and up to date information.

Year end accounting is a great time to clean up your financial books. Here's a checklist of what to do.

Outbound Debt Collections for Inbound Marketing Agencies

The term "inbound marketing" became a buzzword for marketing agencies with the popularity of the internet. Websites, search engines, and social media began attracting interest for businesses looking to promote themselves. Traditional marketing of phone calls, direct mail pieces, TV and radio still mattered but marketing agencies noticed that online properties could work at a lower cost. Inbound marketing attracts potential customers without the need to reach out to them.

Inbound, however, doesn't work for marketing agencies looking to collect on their unpaid receivables. 

How to Write a Late Payment Reminder: When to Be Friendly, When to be Firm

It can be challenging to strike a balance with a client who hasn't paid on time. You may be tempted to take it personally, question your own worth or be tempted to blow it off. If you and your client have an agreement that you will complete work and they will pay, you are absolutely right to remind them to pay. Your chances at a successful recovery depend on how you handle the situation.

It's okay to remind your clients that they owe you money. Here are some tips and sample payment reminder notices to help.

4 Warning Signs Your Client is About to Leave

While it would be nice to get a heads up when a client decides to pull their business, they may just disappear.  Depending on your business and the size of the client, losing one client could be devastating. You may also take it personally if the client has been with you for a long time or if they're one of a few. The most important part of client retention is communication. Maybe these clues don't mean what you think they mean.

4 warning signs your client is about to leave...