A recent global study revealed that American businesses get their invoices paid in an average of 23.5 days compared to businesses around the world. Small to medium businesses in Canada, the Czech Republic, Germany, Hong Kong, France, Ireland, the Netherlands, the UK, Singapore, and Poland were also surveyed. Business invoices in France and Singapore were paid on average in 45 days.  Comparatively, these figures are positive but late payments are still a problem in the United States.

What challenges are U.S. small to medium businesses facing when attempting to get their invoices paid faster?

Small business owners, we recognize you have a lot to do. Starting a new business or growing a small one means that there's a lot of action occurring all at once. When too much happens too quickly, there simply may not be time to stay organized. A back office necessity, that is crucial to your business, is organized accounting and bookkeeping. 

At a minimum, here's what you can do to organize your small business accounting.

Nearly every business will struggle with cash flow problems at some point or another. The challenge is when your client's cash flow struggles affect your business' cash flow. You do have options to deal with slow-paying clients including collections, writing off their accounts, or even firing them as a client. If you're stuck trying to decide what to do next, have you considered how late paying clients put your business at risk?

The definition of working capital, in accounting terms, is the difference between your business' current assets and current liabilities. Investors and business analysts will use this as a balance sheet measurement of overall liquidity or financial health of the company. When an organization has enough working capital, they are able to easily pay short term expenses and liabilities and maintain daily operations. 

Organizations depend on their clients following through with promised payments. When recurring revenue is compromised, other areas of the business may suffer. Failed or rejected payments may be regarded in the same line as bad checks. While the declined payments may not be intentional, your business may need help recovering these payments. 

Becoming a freelancer means leaving a traditional job in the hopes of feeling more respected, empowered, and excited to start each day.  It also means taking on the task of running a business, from sales and marketing to accounting and paying taxes. Finances may be different every month, with a large payouts one month and then smaller or non-existent payments at other times. Budgeting is very important as well as getting paid on time. Unfortunately, most freelancers experience late paying clients or those who don't pay at all.

Here are the reasons freelancers don't get paid and what can be done about it.

When selling anything that requires ongoing payments, there could be a challenges in collecting those payments. Businesses selling software-as-a-service (SaaS) receive a monthly or annual fee from clients who have purchased a subscription.  The client may claim that they no longer use the service or a variety of reasons for nonpayment. Anytime a client is contractually obligated to pay for a product or service, whether they use it or not, the account can be sent to collections.

If your business is selling software or any other subscription model, you do have recourse for non payer churn.

When online retailer Amazon recently purchased the grocer Whole Foods, CEO John Mackey compared their relationship to dating and falling in love. Destiny reigns when one business has what the other business needs and the sales process feels "meant to be".  Inside of a business relationship, however, there are situations and discussions that could be challenging but must be addressed. 

Instead of avoiding tough conversations with your business customers, follow these rules.

Deciding to hang out a shingle is a nerve-wracking leap into the unknown. You obviously need enough salary to sustain your lifestyle but you also face the delicate challenge of not scaring away potential clients. Trying to decide what to charge for your services and how to invoice new clients doesn't have to take too much brain power. 

Here are a few tips to set rates for your freelance business and invoice your clients.

Agency life is never boring. Built on the back of creativity, digital marketers and advertising gurus spend hours pouring over strategies, pitches, and messaging for clients. When a campaign takes off and clients see return on their investment, everybody celebrates the win. Creative agencies still require someone to operate the back office, maybe not-so-fun, part of the business. 

Here are B2B accounting tips for Digital Marketing and Ad Agencies to stay successful beyond campaign wins.