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« Paying on Accounts Payable - the final step in Cash Management | Main | Creating processes for Invoicing improves Cash Flow »
Saturday
Dec112010

Collecting Accounts Receivables

          YIKES! NO WAY DO I WANT TO DO THAT!

 

Part Three...

Collection Calls seem to be the one area where everyone has the hardest time. Let's face it- no one really wants to call up the client you have been smoozing- and ask him for money.  Honestly though-isn't earning your fee what you are trying to accomplish all along.  If you value your time and effort, you will have more confidence in this area.

I always tell my clients, once their customers go over the agreed upon terms, they have become their  customers banker.  The money they are not paying you is being used in their benefit, in their company. Meanwhile, you are struggling to pay your bills.  Receiving cash is a very important aspect of selling the job- don't treat it lightly.

Make sure that your clients can afford your product.  Always stay in touch with your clients, listen around in your community- make sure they aren't having financial troubles.

Offer a small discount to pay early. You can make up this amount in finance charges you won't have to pay out. 

Set up a plan for calling on late receivables- and stick to it.  If your not calling, another company that is  might get the only cash on hand from your client.

Set up a payment plan with clients if they are a little stretched- they will be grateful- and you'll receive at least some money each month.

Turn over collections to an agency promptly. Don't wait longer than four to five months.  These agencies charge a fee, but it is well worth it if they can get money your not able to collect. There are many rules and regulations in this field. It's best left to a professional.

Be realistic. If you have receivables on your books you are never going to collect- write it off as bad debt and learn from the process.

Flag your clients that are slow payers.  Rethink your selling position to those businesses. Maybe you need to increase your price because you will have to cover costs longer?

Collections are the lifeblood of your company. Without cash you will need to close your doors.  Create a policy you can live with, and make sure your staff knows what it is; then follow it everyday.

 

 

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    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables
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    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables
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    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables
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    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables
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    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables
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    Response: Kion Kashefi
    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables
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    QuickBook Training: Virtual Accounting: Wilmington, NC - Accounting: QuickBooks: Bits of Silver Blog - Collecting Accounts Receivables

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February 15, 2011 | Unregistered CommenterOffice 2007

accounts receivable is too important for any business to ignore … because if goods and services sold don't quickly become cash in the bank, it's just a "pie in the sky" that cripples your cash flow and pounds your bottom line.A measured approach to debt collection is better in the long run than immediately going to a collection agency or court. Consumer credit laws affect preliminary debt collection methods, while the Truth-in-Lending Act regulates the amount of interest that can be charged on overdue payments.
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September 19, 2011 | Unregistered Commentermyob training course

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