Hello, my name is Jerome Silas. Welcome to my website about creating and following a healthy household budget. When I was in college, I tried to create a smart budget to save all the pennies I could after paying my bills. Unfortunately, I jumped in too fast and created a budget that was impossible to follow for the long term. Through the years, I have learned all about the methods that work best while creating and following a budget. I would like to share those methods with you all to help everyone create a healthy household budget. Thanks for your time.
Many businesses struggle with collecting their accounts receivable. It isn't just about having to be aggressive: it's also about potentially damaging your relationships with your customers. An easy solution can be to outsource your accounts receivable management. Here are a few signs that it may be time.
1. You're Spending a Lot of Time on Your A/R
Your time should be spent growing your profit, not collecting your already existing profit. Once you've sold your services, it's time to continue selling your services—not trying to collect old bills. If you're spending hours every week making calls and sending bills, it may be time to outsource.
2. You've Fallen Behind On Your A/R
If a significant percentage of your billing is falling behind, then it's likely that you can recover far more money by outsourcing your A/R management. If you never collect the money, the money isn't useful to your business; an A/R management service will be able to collect your funds faster so that you can start using them immediately.
3. You're Having Cash Flow Issues
Many small businesses fail because they experience issues with liquidity. Even though they're making money, they don't have that money on hand. One common way this happens is because they aren't collecting on their bills. If your business is currently experiencing cash flow problems, an A/R management company can help.
4. Your Customers Don't Want to Pay
As a small business owner, you often foster very direct and close relationships with your biggest customers. If these customers have become resilient to paying, they may have come to expect special treatment. An A/R service puts an additional layer between you and your clients, so you don't need to feel uncomfortable disrupting your relationship.
5. You Have Extremely Old Bills to Collect On
When bills become extremely old (such as over a year or two), they become almost impossible to collect. At that point, it may be better off for you to sell them to a company that purchases older billings. An A/R management service can help you keep track of your older bills and determine when they should be liquidated.
As businesses scale, many of them ultimately decide to outsource their accounts receivable. Not only will you be able to keep stronger relationships with your customers, but you'll also be able to maintain greater levels of liquidity due to a higher percentage of income received.
Share15 May 2019
