It’s not easy to know when it is time to hire new employees or create new positions as your company grows, especially when it comes to your accounting department. It’s relatively easy to identify when to hire new salesmen and easy to justify that hire because with them, you will be able to close more deals and make more money, right? Making the same decision about accounting functions like collecting accounts receivable is a little bit more difficult, but just as important.
There is no real formula for figuring out when you should turn your part-time position into a full-time one, or how many people you should have dedicated to collecting accounts receivable, but over the years, we’ve come up with a few general rules to help you make this decision for yourself based on your organization’s specific needs. Continue reading
You’ve attracted the customer, made the pitch, sold your product/service, sent the invoice, and delivered the product/service…but the work is not done yet! You still need to collect the money owed to you. The reality is that collecting accounts receivable is hard and it’s a serious problem for a lot of companies; and it’s probably the company’s fault. This article unconvers some shocking facts about the accounts receivable crisis and what you may or may not be doing to make collecting accounts receivable even harder for yourself.
Everything we do in both business and in life is a series of steps. If you want to advance in your career you will need to develop a plan, work hard, network often, etc. and if you want clean, glossy hair you should lather, rinse, and repeat right? No matter the size of a goal, completing the necessary steps is a key to reaching it. So, if your goal is to consistently get paid on time by your customers, here are 6 steps that we recommend for any business:
There are two kinds of financially distressed customers; one who hides it from you and ignores your attempts to collect the money they owe, and the other kind who comes to you for help. In this blog we discuss the right way work through collecting accounts receivable from the second type of customer.
Many companies use the invoice templates that come out of the box with their accounting software, and while that is not the worst thing in the world, most accounting systems are notorious for having ineffective templates for business forms, especially invoices. Your invoice is the very first step in one of your most important processes, collecting accounts receivable. Sending an invoice that is unattractive, confusing, out of sync with your brand, or without actionable information is not a good way to start the process if you’d like to get paid on time. If your customers cannot quickly digest the information or easily answer their own questions about payment, your invoice will inevitably be moved to the bottom of their payables pile and it is unlikely that you will be paid on time. Not to worry, it’s an easy issue to fix. Continue reading