Posts Tagged ‘Accounts Receivable’
Fast and Easy Cash Accounting….oh, it’s Accrual World
March 8th, 2010 | 
Author: 
Holy Cow! I'm Not Equipped to Make These Decisions Yet!
Accrual Method or Cash Method Accounting?
Singin' the AR Blues (Part 3) Collecting Past Due Invoices
So now that you have set up new AR policies what is to be done about the business’s that already owe you money? Well, now is the time you have to become resolute in your mission to preserve your business and take action to collect the debt owed to you. I won’t tell you this is an easy or pleasant prospect. On the contrary, you will be facing clients you may have worked with for years and this may be the first time you’ve ever had to deal with them being delinquent. Keep this in mind and approach the matter in a sensitive manner with the thought of preserving the relationship for future transactions if possible.
Unfortunately, you are looking at self preservation at this point and a line needs to be drawn. So, your first step will be putting your client’s account on hold until payment is received. You may want to offer to allow a prepaid account for future services and invoices so you know current services are covered while they are paying off their past invoices.
Posted in Business Finance | 
Tags: Accounts Receivable, billing, bookkeeping, business communication, collecting a debt, collecting on past due invoices, collection practices, debt collection, first party collections, invoicing, invoicing policy, non paying clients, prepaid accounts, small business | 
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Singin’ The AR Blues? How To Get Your Business Mojo Workin’ Again
So you are a business owner. The economy is looking grim, but so far your clients keep calling and new people are walking in the door every week. So far, so good right? Until you start noticing a frightening new trend…your clients who have been so happy about using your product or service aren’t so happy about paying their bill at the end of the month. All of a sudden your cash flow is in jeopardy and the economic crunch has just landed on your doorstep. What now?
With the economy in disarray, many businesses are faced with this scenario that not only causes cash flow to slow to an alarming trickle; it actually adds the additional cost of trying to collect from slow or non-paying clients. Most business owners don’t realize this is actually an added expense but once you take into account the time invested in trying to collect on services/products rendered that could be used to generate new revenue, the added systems needed to check clients’ credit worthiness, the time needed to monitor payment collections, send delinquent account collection notices and, in extreme circumstances, make phone calls and visit non-paying clients, it is easy to see how quickly the additional expense adds up.