it’s important to fully understand the connection between A/R and your bookkeeping in order to make the smartest financial decisions for your business.
Days Sales Outstanding, or DSO for short, is one of the most useful barometers for understanding a business’s financial health. If you’re new to DSO, read on to understand how it works and what it means for your business. And if you’re already a pro at calculating DSO (you are, right?), consider this a helpful refresher.
Have you ever sat down at a restaurant and had the waiter deliver exactly what you wanted without you even asking for it? The odds of this magical event happening are approximately the same odds as you getting paid without sending out an invoice. So what are you waiting for? The single biggest lever you have in getting paid quickly is invoicing quickly.
Remember that time when you spotted a great little out-of-the-way restaurant and were really excited until you saw the "cash only" sign in the window and realized your wallet was a little low? Anything that causes friction or causes a customer to push off payment processing to another day is to be avoided diligently. What can you do to avoid this behavior?
Guest Author Chris McKee, Managing Partner of Venturity Financial Partners, talks about accounts receivable, customer invoice followup and how the InvoiceCare virtual A/R team fits in perfectly with Venturity's solutions.
Have you ever looked at your aging report with high hopes that your over-60-days and over-90-days columns would just zero out this once? In this article, we’ll talk about the most common reasons these balances persist.
Before you let the pressures of running a small business get to you, take a deep breath and sit back. In the words of Douglas Adams: DON’T PANIC. If you want to be a stress-free business owner, follow these tips.
The payment terms you’re using are probably “Due on receipt” or “Due in 30 days.” If those aren’t your terms, congratulations! You’re in the minority. However, most people adopted these terms long ago and never looked back. They are by far the most popular. Yet when it comes right down to it, neither one is very effective.
Best case, all your customers pay early or on time. But since we're addressing accounts receivable best practices, we need to address topics like late payment penalties. The late payment penalty is an important lever in your cash flow cycle, so let's talk about how to set them up, how to communicate them, and how best to enforce them.
Tweaking your invoice to perfection is well worth your time. Once you’ve found a winning formula, you can use it over and over again. Just keep in mind that positive results from even small improvements will be multiplied by the hundreds, if not thousands, of invoices you’ll send in the future.