Accounts Receivable Solutions Tips

Accounts Receivable management is probably one of the toughest parts of running a business. Collecting overdue payments is not easy because there can be numerous reasons for why a client may not have made the payment, which is why you need to handle the situation with the utmost care. Here are some accounts receivable solutions to help you deal with your overdue payments.

  • Don’t Procrastinate– Some business owners aren’t sure about when they should start the collection efforts. Collection efforts can begin as soon as your product has been delivered, service has been provided or project has been completed. This will not only improve your cash flow, it will also help you build a better relationship with your client.

Accounts Receivable Solutions

  • Record Details of Collection Efforts– In accounts receivable solutions, it is important that you document all collection communication. This will not only serve as proof of your attempts to contact the client, but will also provide you with a clear picture of how things are and information to develop a collection strategy. Always remember that persistence is key- the more persistent you are, the more chances there are of you getting paid.
  • Offer Alternative Payment Options– It always helps to have multiple modes of payment. This will make it easier for clients to pay you and clear dues.

Accounts Receivable Management

  • Never Harass or Threaten– It is easy to lose your cool when all your attempts at collecting overdue payments have yielded no results. You will be tempted to threaten your client or use inappropriate language at this point, but you should keep your cool at all times. To behave otherwise would be unprofessional and can damage your reputation.

Accounts Receivable management can be very difficult on business owners. If you find that it is taking a toll on you and your business is suffering, you could consider hiring an accounts receivable solutions firm.

Your Bookkeeper and You

With your books in a mess, you finally decided that it is time for you to hire a bookkeeper or invest in client bookkeeping solutions. But it is scary; to hand over control of your finances, records and accounts to someone else, no matter how trustworthy, is nothing short of terrifying. You should be terrified, because this is not a decision to be taken lightly. We understand how difficult this transition is for you; which is why we will help you understand what to expect of a bookkeeper.

  • More Involvement in the Bookkeeping Process– A good and honest bookkeeper understands that no one knows your business better than you, so he will keep you involved and informed at all times. Together, the both of you can figure out what makes your business tick and how to keep it going.

Client Bookkeeping Solutions

  • Organized Finances– Bookkeepers thrive on organization; if they were not organized, they would never be able to make things work. Not only will your bookkeeper, in-house or client bookkeeping solutions, keep your books neat and updated, they will also expect you to send them data on time and accurately.
  • Grow your Business– It goes without saying that hiring a bookkeeper will save you time, which you can devote to your business. With more attention from you, your business will thrive.

bookkeeper

  • Taxes Will Be a Breeze– The good thing about investing in client bookkeeping solutions services is that you will have access to a number of bookkeepers, accountants, tax specialists and more. So come tax season you won’t have anything to worry about.
  • Save Money– Sure outsourcing bookkeeping or hiring a bookkeeper isn’t free, but a professional will be able to spot areas you are overspending in, provide you with information about business trends and insights and make wise business decisions. All this results in you saving company money.

For Business Owners with Poor Knowledge of Finances

All entrepreneurs are passionate and driven- driven by the desire to make their dream come true, to build something of their own. Unfortunately passion, while it may give your dream wings, is not enough to keep it in the air. Business owners and entrepreneurs learn the hard way that financial knowledge is also important to run a business. Every day you will find that you have to navigate taxes, payroll, budgets, expenses and the rest. If you find that you do not have sufficient knowledge of finances, here are some tips to help you.

  • Manage Your Finances- You need to remember that no matter what business you run, the aim of your business is to generate money and become self sustaining. Because you think you can’t handle the money, you ignore it till the bills pile and your debts mount. If you feel you can’t handle your finances, get help- hire a bookkeeper or accountant, or invest in virtual bookkeeping. Make sure that no matter what, your finances get the attention they deserve.

Virtual Bookkeeping

  • Investing in the Right Tools– Small businesses generally operate on a tight budget, which is quite often why, the criteria for purchasing tools, services or software is what is affordable right now. Instead look at the bigger picture, find tools that serve your purpose and are cost effective. Changing tools after a period of time when you are ready can be quite complicated and can also waste time. So find the right tool for your business before making a decision.

Virtual Bookkeeping

  • Educate Yourself– Educating yourself is possibly the best way you can do to help your business. Instead of drowning in the business, find ways to learn more and understand your business, especially your finances. If you have in- house bookkeeping staff or use virtual bookkeeping, you can always discuss things with your bookkeeper or accountant and learn more. Remember that education is a lifelong process.

Why Small Businesses Are Thriving

The number of small business establishments in the United States has been growing steadily over the years. Not only are small businesses major contributors to the economy, they are also responsible for creating 64% of jobs in the US over the past 20 years. Let us take a look at why small businesses are gaining such popularity.

  • Small businesses can adapt to changing market practices and conditions with ease. They are also capable of incorporating the latest technology and cloud based services, like bookkeeping services for small business and payroll, into their system quickly and effectively. All this can be attributed to the small size of the business which makes it versatile and nimble enough to adapt.

Bookkeeping Services for Small Business

  • Small businesses normally function out of small communities, which means they generate jobs for the people and pump money into the community. They create more opportunities in the area they are located. Bookkeeping services for small business firms have found that local communities are strengthened as people put money back into the community.

Why Small Businesses Are Thriving

  • Studies have found that small businesses produce more patents than bigger corporations. This is simply because employees in small establishments have lesser restrictions and hence have more scope to be creative and innovative, in fact, it is encouraged. Small business employees are capable of creative thinking, higher cognitive abilities and better problem solving skills. Bookkeeping services for small business firms also believe that limited resources that force you to find innovative solutions is also a contributing factor.
  • Small businesses are positioned to grow and become multi- national companies, helping local communities and eventually the global market.

With the growing awareness of the importance of small businesses and how they help the economy, the government and numerous corporations are doing their part to help small businesses grow. Thanks to special programs, small businesses now have access to funds that they need to flourish and establish themselves. Small businesses are here to stay.

Right Practices to Collect Receivables

No one likes to run after their clients for payments even if it is their own money, however whether you like it or not, you need to get the money. Outstanding balances will adversely affect your cash flow and harm your business. So you need to make sure that you either outsource receivables management or have the right practices in place to get your money back as soon as possible; here is what you can do.

  • Create a List of Overdue Payments– Create a list of overdue client payments, sorted by the amount owed and revise this list at least once a week. Make it a point to review this list once every day so you and your team know where you stand.

Outsource Receivables

  • Don’t Wait Till the Payment is Overdue to Make the Call– You do not have to wait till the payment is 30 days overdue to call your client. Contact your client in the guise of a customer service inquiry call and subtly remind them about the near overdue payment. Don’t be pushy on the call.
  • Call Clients Frequently When Payment is Overdue– You do not want to lead your client to believe that you do not take overdue payments seriously, so contact your customers at least once in a week to follow up on the pending payment. Increase the frequency as the days go by.

Outsource Receivables

If you find that the collection efforts are taking a toll on you and affecting your work, we suggest you outsource receivables management. The focus of any receivables management company is to collect your payments, which means they are focussed on the task and know how to get your clients to pay up. Outsource receivables, leave the collection to the professionals and focus on your business.

Hiring the Right Bookkeeper

Most business owners and entrepreneurs find bookkeeping annoying and troublesome; which is why most of them hire an in-house bookkeeper or invest in online bookkeeping at the first opportunity. Definitely the smart thing to do, unfortunately deciding on a bookkeeper is not as easy. While you may know the basic know-how of bookkeeping, you may not be in the position to screen candidates- one will look as good as the other. So how do you decide who to hire? Here are some tips to help you make this decision.

  • Thorough Online Research– Research your candidates, individuals or firms, so that you have a clear idea of what they offer and their qualifications. You should also see if you can dig up some reviews or contact one of their clients to get a better picture.

Online Bookkeeping

  • Ask specific questions– The key to getting to know your candidates is to ask specific targeted questions intended to understand them better in the light of your business’ needs. Here are some areas you should cover.
  1. Bookkeeping Experience in Your Particular Industry– While the principles of online bookkeeping and accounting are the same across industries, there will always be certain nuances that change with the industry like credit control, taxation laws, payroll etc. Your bookkeeper will not be able to deliver his best for your business unless he knows what he is getting into. Online bookkeeping companies have an advantage here as their team of bookkeepers means that there will most likely be more than one person with experience in your field.
  1. Bookkeeping and Accounting Software Used– There is so much happening in the world of bookkeeping and accounting, which means you need bookkeepers who are skilled in using the latest applications. They need to also have experience with cloud based services.

Hiring Bookkeeper

  1. How Do They Keep Up With Changes In Bookkeeping And Accounting Practices– Bookkeeping is an old practice with changes happening every day. To be an efficient and effective bookkeeper, your bookkeeper should be aware of the latest developments in the field as well as use time saving apps and programs.

Handing over your bookkeeping to a stranger is not easy and not a task to be taken lightly, but with a bit of preparation you can get it right.

Trends in Employee Management

The essence of business has remained unchanged, however the means of doing business has changed over the years; from online bookkeeping services to retail, everything has been affected. Technology and the internet have changed the way businesses work and function, bringing about unforeseen changes and introducing trends in business management. Today we will take a look at a couple of recent trends emerging in employee management and payroll processing.

  • Automate Your Systems– Automating processes that can be automated can save you a lot of trouble and time. This is more efficient, effective and also saves time and money. Automate processes like payroll, inventory management, HR, bookkeeping etc so that you can focus on core business tasks and grow your company.

Online Bookkeeping Services

  • Different Types of Employees– There are different types of employees in the business sector today- part time, short time, contract; you can select the type based on your requirement and the skill set. Of course, the remuneration and benefits for these employees is different from that of regular employees, but modern software and online bookkeeping services are designed to accommodate such employees and pay them accordingly. 1099 contractors are also becoming increasingly popular.
  • Link Payroll and Accounting Software– All manners of businesses are slowly moving to the cloud. With all your data on the cloud, it makes sense to link your different systems and allow them to work together. Aside from being efficient and time saving, doing so will also allow you to have access to employee details from a single location.

Trends In Employee Management and Payroll

  • Allow Staff Access– Businesses are finding it easier to allow staff access to their individual payroll data. This facilitates transparency and employees know details like their hours worked, number of PTO hour etc. Staff will have access to only their data which means you don’t have to worry about them getting access to sensitive information like employee details and online bookkeeping services data.

The world of business is a constant state of flux; if you want to be successful, you have to be informed and always stay on top of things. Technology is changing the way the world thinks and functions.

Getting Things Together after a Natural Disaster

Sometimes things go bad, and sometimes it happens to you- it could be an earthquake, hurricane, floods; the possibilities are numerous. While you cannot predict and prevent disasters from occurring, you can take steps to ensure that your business recovers from the tragedy. Here are some tips to help you and your business recover from a disaster.

  • Take Steps to Ensure the Safety of All People on the Premises– The first step is such circumstances is to ensure that you, your loved ones and the people at your workplace are safe. Follow up on the instructions provided by the local authorities and adhere to them. If you are outside, finding a safe place should be your first priority.

Bookkeeping for Small Business

  • Report Losses to Insurance Company As Soon As Possible– Make a list of all damaged and destroyed items and report the losses to the insurance company as soon as possible. Keep this list safe along with the receipts of the new purchases. You will need this for the insurance claim, bookkeeping for small business and for filing tax returns.
  • Take a Look at Your Expenses– The disaster means unexpected purchases and expenses, so take a look at your expenses and where you stand financially is important. Shut down any utilities that aren’t being used, review your budget, bookkeeping for small business and clear out unnecessary expenses.

Natural Disaster

  • Avail of Disaster Assistance Loans if Needed– If you find that the damage is too much and you cannot meet the expenses, you could consider applying for a disaster assistance loan. The SBA gives loans to homeowners, renters, businesses and non- profits to replace property and equipment lost or damaged in natural disasters.

No one likes to be a victim, but when that does happen, all you can do is do your best to get things together.

Precautions to Prevent Data Breach

All business owners, entrepreneurs and small business accountant worry about someone hacking into their network and stealing information; data security is a matter of great concern in today’s small digital world. However when it comes to data security, it is not just the big things, even the little things matter- the little things that we often consider as trivial and ignore. Unfortunately, it may be these little things that result in a security breach. Here are some ways in which business owners out their data at risk.

  • Not Being Careful with Passwords– No matter how much banks and other services emphasise that passwords never be shared, some business owners just don’t get it. It doesn’t matter that you trust the person you shared the password with; what matters is that the more people know your password, the more there are chances of it getting out. This is why all small business accountant and bookkeepers urge business owners to be vigilant always. It is also a healthy practise to ensure that you have different passwords for all your accounts; same passwords can mean that in the event that someone finds your password, they will have access to all your accounts. It also helps to change passwords regularly so that no one can figure it out.

Small Business Accountant

  • Using Outdated Software– Hackers are getting smarter by the day; security vulnerabilities are reported every other day. Using the latest software and applications means that you will have access to the latest security patches, thereby keeping your system as secure as possible. Install strong and reliable security software so that your system and network can be kept safe from malicious software and applications.

Data Security

  • Lack of Knowledge about Fake Emails– Fake emails are a major cause for concern. Phishing and scam emails can gather sensitive information and use them to get into your system. The only way to prevent this is to be aware. Typically fake emails use incorrect spelling, grammar, urge immediate action and request personal information. Make sure you and your staff keep away from such suspicious emails. Do not ever open links or attachments mentioned in fake emails.