Posts Tagged ‘cash crunch’
Singin’ The AR Blues? How To Get Your Business Mojo Workin’ Again (Part 2)
June 16th, 2009 | 
Author: In our previous blog we began exploring the benefits of changing your invoicing policy and how that one small change can effectively save you from becoming a casualty of your clients cash flow problems. Today we are looking at the specifics as to how to go about putting that plan into action.
Very few business owners start their company with the goal of becoming collection agents, so being put in that position can lead to avoidance. You have a personal relationship with your clients and it can become an emotional issue for many small business owners—who wants to add stress to people you know are already struggling? So let’s take the emotional baggage out of the equation by setting up some simple guidelines that communicate your expectations and provide more up to date information for your clients that will help them better budget their payments so you get to avoid being “the bad guy”.
Posted in Business Finance | 
Tags: A/R, accounting, accounting software, Accounts Re, billing, business communication, cash crunch, cash flow problems, economic crisis, economic downturn, good business practices, invoicing, invoicing policy, non paying clients, recession, 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.