Monitoring your accounts receivable performance is the first step in improving the way you manage it; after all, “If you don’t know where you are going, you will probably end up somewhere else.” (Laurence J. Peter ). Below we’ve compiled and explained, in plain English, some of the most important metrics you should consider when measuring accounts receivable performance and how to interpret them to better gauge the health of your A/R and overall cash flow. Continue reading
The only way to be able to manage and see exactly who owes you money and when in the collections department is by using an accounts receivable aging report. It is one way to keep everything organized and keep your team on track. Those that are latest in your aging report, get the first call. Many collections departments use the accounts receivable aging report as their go to reference for all their customers and open invoices.
Any business that sells on credit has, at one time or another, contemplated taking a customer to court over unpaid invoices. Once you do make that consideration, you can feel like you’re stuck in between a rock and a hard place. No one wants to go to court and you’re fearful of upsetting a customer, but in all reality you really need to collect the money that is due to you. Now you have a big decision to make; do you sue the customer, or write the invoice off as bad debt? It’s not an easy decision.
Dear Excel Spreadsheets,
Although you have been here for me and my business through the years, you simply can’t give us what we need anymore. You’re still a wonderful program, but I’ve grown too big for you now. It’s not you, it’s me.
Most accounts receivable specialists use Excel on a daily basis. You’re constantly inputting data and using it to keep track of cash flow. That being said, Excel is not always easy to work with. One wrong move and the information you have been working relentlessly to get may end up incorrect. Luckily, there are a lot of short cuts and tricks to use to make Excel easier – and faster – to use.
In a past article we explained what exactly a business credit policy is and the importance of making sure it is updated regularly; but what is the goal of a business credit collection policy? How do you make sure it is effective? Your credit and collections policy can be as in depth or as brief as you would like, but keep in mind that even the most basic policy should help a company answer the following questions. Continue reading
Deciding whether to have in-house bookkeeping is a big decision for a lot of small business owners. There are pros and cons to both sides in a number of areas, from the amount of time you have to devote to it to the cost of keeping it in-house or hiring an outside bookkeeper. The answer to whether you should have in-house bookkeeping or not simply depends on the business itself. Everyone will come to a difficult conclusion based on their own specific needs. Below are pros and cons of keeping in-house bookkeeping, to see if it is right for you.
One of the biggest concerns of any business, but especially growing small and mid-sized companies, is cash. In order to support growth, these companies must have access to working capital and the cash flow necessary to invest in their growth strategies. The problem is that cash flow is usually held up in accounts receivable. Because accounts receivable management tends to get pushed aside due to more obvious business struggles, many companies don’t even know they have a problem until they begin to notice a shortage of cash and difficulties meeting financial obligations- by that time it’s too late. Continue reading
Creating invoices for every customer can be a painful task. It’s extremely time consuming to create a new invoice every time. On top of that, some customers simply can’t pay if you leave out an important detail by mistake. All said and done, creating invoices is a time sucker, when you could be using that time to make important phone calls to customers who are past due and need to pay up. To save you on time, energy and important details, we’ve created this blog post on how to create invoices in QuickBooks.
Even if you have the best credit policy in the world of accounts receivable or are tracking your DSO to a T, you still may struggle to collect from every customer. There are a lot of other tactics that can be put in place to help your collections department collect on time. Little tips and tricks are sometimes all you need to bridge the gap in your credit and collections department. Below are our favorite tricks for collections in QuickBooks.
One of the biggest mistakes a company can make when it comes to their accounts receivable is not implementing a credit policy. Establishing a credit policy that everyone must follow ensures that you will not be conducting business with a company with a reputation of never paying on time – or never paying at all. However, a lot of small businesses struggle with where to start when establishing a credit policy in QuickBooks, so we’ve highlighted all the important tips for creating a credit policy.
Many small businesses have different ways of figuring out how well their accounts receivable is doing. Since accounts receivable is a direct indicator of how much cash you have available to you and how well your collections and sales teams are doing, it’s a good idea to track it and be aware of where you’re standing. Here’s a few ways to establish a DSO goal while using QuickBooks.
If last year’s Black Friday weekend is any indication of the trends we could see this year, the Black Friday holiday shopping season could be a huge source of revenue for businesses, including Small Business Saturday. This holiday weekend is all about getting the best deals, usually followed by a lack of sleep, staking out spots in line and a lot of coffee.
Excel can sometimes be one of the most confusing applications to use. One small mistake can result in the dreaded “#VALUE!” popping up, and then wasted time trying to figure out what mistake you could have possibly made. Instead of spending all that time trying to create your own accounts receivable ledger in Excel, we’ve created it for you. Follow the directions and formulas below to quickly create your own accounts receivable ledger in Excel.
Black Friday is arguably one of the biggest shopping days of the year. Typically, the Black Friday deals begin the day after Thanksgiving, however, the deals have slowly been creeping closer and closer to Thanksgiving dinner. Some have even begun on the morning of Thanksgiving, to many people’s dismay, which means more time for people to begin shopping and more promises to pay on their debts. This leads to more invoices and outstanding accounts receivable to collect on. Here are some basic tips on how to collect post-Black Friday.