Don’t Miss This Critical Step in Managing Your Business Finances
Don’t Miss This Critical Step in Managing Your Business Finances
Unfortunately, many businesses pay scant attention to the money that is due to them, figuring that their customers will get around to paying eventually. Why hope and pray for this to happen? Develop an effective accounts receivable management system instead.
First of all, ensure that the invoices you send out contain the following critical information: the correct amount due, the correct purchase order number (or other identifying information your customer needs to track it), correct details about what was purchased, your selling terms (i.e. net 30 days), and a remittance address for them to send the check. You don’t want your customer to have any excuses (they have plenty already) about missing information so that your invoice ends up in a pile somewhere in their accounts payable office.
Once the invoice has been created, review the various reports available in your accounting software to monitor the receivables. For example, in QuickBooks, there are several very helpful reports that can be instantly generated to provide a real-time status: the A/R Aging Summary, the A/R Aging Detail, the Open Invoice Report, and the Collections Report to name a few. Each of these reports provides a unique view on the details of who owes you, how much they owe you, and how long they have owed you. All of this is very critical information that needs to be monitored on a regular basis.
Once you have researched the report tools available to you, create a procedure so that you can then follow-up on overdue invoices sooner rather than later. Choose a combination of steps that may include: faxing or e-mailing copies of invoices that are overdue by a certain amount of days, calling the customer on invoices that are overdue by a longer period of time, and then getting the principals of the customer involved for invoices that are getting really old. Be sure to document each contact made for each customer in your accounting system so you know exactly who said what about when the overdue invoices will be paid. This also provides a history for you to use in determining whether future sales will be done on open account or other alternative methods of payment.
It isn’t easy to ask for money. But remember, it’s YOUR money! If you don’t ask for it, who will?
Dont Miss This Critical Step in Managing Your Business Finances - To learn more about this author, visit Scott Gregory's Website.
Like this article? Share it with your friends
Every dollar you have outstanding on open customer invoices is a dollar you DON’T have in your bank account. If it isn’t in your bank account, you can’t use it for the operations of your business.
Unfortunately, many businesses pay scant attention to the money that is due to them, figuring that their customers will get around to paying eventually. Why hope and pray for this to happen? Develop an effective accounts receivable management system instead.
First of all, ensure that the invoices you send out contain the following critical information: the correct amount due, the correct purchase order number (or other identifying information your customer needs to track it), correct details about what was purchased, your selling terms (i.e. net 30 days), and a remittance address for them to send the check. You don’t want your customer to have any excuses (they have plenty already) about missing information so that your invoice ends up in a pile somewhere in their accounts payable office.
Once the invoice has been created, review the various reports available in your accounting software to monitor the receivables. For example, in QuickBooks, there are several very helpful reports that can be instantly generated to provide a real-time status: the A/R Aging Summary, the A/R Aging Detail, the Open Invoice Report, and the Collections Report to name a few. Each of these reports provides a unique view on the details of who owes you, how much they owe you, and how long they have owed you. All of this is very critical information that needs to be monitored on a regular basis.
Once you have researched the report tools available to you, create a procedure so that you can then follow-up on overdue invoices sooner rather than later. Choose a combination of steps that may include: faxing or e-mailing copies of invoices that are overdue by a certain amount of days, calling the customer on invoices that are overdue by a longer period of time, and then getting the principals of the customer involved for invoices that are getting really old. Be sure to document each contact made for each customer in your accounting system so you know exactly who said what about when the overdue invoices will be paid. This also provides a history for you to use in determining whether future sales will be done on open account or other alternative methods of payment.
It isn’t easy to ask for money. But remember, it’s YOUR money! If you don’t ask for it, who will?
Dont Miss This Critical Step in Managing Your Business Finances - To learn more about this author, visit Scott Gregory's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Scott's articles
 | |
|
|  |
 | |
|
| |
 | ||
|
||
 |
||
|
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
 |
 Radio Campaigns Increase Performance Leadership Start Right Warning Signs Checklist High Quality Sales Leads |
|
 | ||
 |
Top 50 SEO Posts - 2008
Top SEO Posts of the Year | |
 |
Top 50 Marketing Blogs
Top Blogs To Watch In 2008 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||||
| ||||||||||||
|
|
||||||||||||