You’re doing a great job and winning contracts. Your clients praise your products, services, professionalism and technical astuteness. From the outside looking in, it seems as if you should be rolling in the dough. But where is the money? How is it possible to be so successful but have so little cash flow? The answer my friend, is blowing in the accounts receivable department. We’d be willing to bet that you have outstanding invoices. Your job is to secure the business and execute to the best of your ability. Let Kelowna Bookkeeping collect what is owed without infringing on your peace of mind.
Establish Billing Policies
This may seem like a no brainer but you would be surprised to know how many of our clients haven’t already established formal billing policies. If you’ve reached out to us for assistance, you’ve moved beyond a hand shake. It’s no longer enough to provide a product or service and assume that your customers will pay you. Our role in this is to lower your accounts receivables and increase your cash flow. If you don’t already have one, we will partner with you in establishing concrete billing policies that benefit your business. Bottom line – clients need to know when to pay you.
You know all too well how life works. A bill comes in the mail, you toss it in a pile and promise to get back to it at the end of the month. Digital invoices are easier to ignore because you either delete them accidentally or shift them to an email file folder. Unfortunately, understanding doesn’t improve your cash flow. If payment is due on the 15th, we will automatically send out statements on the 16th to all past due clients. This service alone is worth its weight in gold. Your accounts receivable specialist will email invoices directly from QuickBooks. With this tactic, we guarantee a decrease in delinquent invoices.
Identify Bad Clients
This service requires more than sheer numerical analysis. We utilize soft skills to identify undesirable clients. How do they make you feel? Are they difficult to work with? Do they pay on time? Are they benefitting from your goods and services? A painful lesson in business is that not every client is a good client. Just because they have a need or the resources to pay doesn’t mean that they’re right for you. It can be quite liberating to cut the cord. Your accounts receivable specialist will partner with you in isolating pain points and extracting them from your business. Remember why you got into this business in the first place. You wanted to live your best life and assist others in doing the same.
Collecting delinquent invoices is the nastiest part of business. Many entrepreneurs find it difficult to collect from clients when they have established a personal rapport. It’s awkward, uncomfortable and leaves a bad taste in everyone’s mouth. Depending on how it’s executed, the client may decide to cancel the contract. This is why you need a 3rd party to intervene. The client will recognize that you’re a professional business and respect your decision to outsource this portion of your business. In most cases, we have discovered that the customer simply overlooked the invoice. We have a standardized way of handling these matters but are more than willing to consult with you for a personalized approach.