Accounting Tips For You

I once had a boss that taught me that the best time to mow the lawn was “just before it needs it”. He said, “if you look out the window and say the grass needs to be cut, it’s too late.” The same is true in the world of accounts receivable management. The best time to place accounts for collection is “just before it needs it”!

Think about it, most of the time when we decide that it’s time to take action it is because we called and the phone was disconnected, or we sent a statement or late notice and it was returned undeliverable. Granted, sometimes a company will close up just days after ordering, but that is really a rare occurrence.

A while back I was given the opportunity to say a few words at a sales meeting, so I proposed the “Johnnie Cochran method of identifying bad accounts”. For those of you that don’t remember Johnnie Cochran during the O.J. Simpson trialcoined the phrase, “If the glove doesn’t fit, you must acquit”. Well, I suggested these two phrases: If the phone is disconnected, it won’t get collected; and, If you have to skip trace it, it’s just too late to place it. As you can imagine, that gainedquite a fewlaughs. But the fact is, if the account isto that point, forget about it.

Now I am not saying that accounts with disconnected phone numbers never get collected. If we never collected accounts that had to be skip-traced, we would not be worth our salt as a collection agency. What I am saying is that companies that use that as a method of determining when to place, get a much lower collections return than companies that have a timeline that they follow most of the time.

Many experts in the field agree that a timeline for accounts receivable needs to be followed in order to maintain positive cash-flow. The exact timeline depends mostly on your terms.Suppose for a moment that your terms are the normal “net-30″, Read more

When a business is established, the owner tries to fulfill all his dreams and aspirations in the form of this business. A business is not only an entity; it is a dream for many people and people, who are adamant of making their business a big name definitely need to do a lot of hard work and need to put in a lot of good things to materialize their dream. Any big firm was never a big firm. It has to start from starch and from there begins the journey that takes them through ups and downs but it is sheer determination that makes a small business turn into a big name in the industry.

Nature and size of two businesses can never be the same and keeping this in mind it is necessary that the accounting departments of all businesses fit the bill of the requirements. The accounting department of any firm is definitely the one department that has a lot to do in terms of performance and in terms of making the fate of the business organization. Keeping this thing in mind, this means that a small business organization would also need to have a competent accounting department in place. However, if this is not possible, then taking the help of a small business accounting firm that is completely competent in providing expert services to any small business firm is definitely an intelligent move by any business owner, who wants to fulfill all his dreams of seeing their organization in the limelight of the industry.

Taking the help of a small business accounting firm yields a lot of great results because the people, who work is these firms are CPAs and they know all the exact things that need to be done to take your business to the next level. These professionals, with their competence level and knowledge of the various aspects that are associated with the accounting department of any firm, make sure that all the accounts books in your firm are maintained p Read more