You send your invoices to your customers, each with a clear and specific due date. Yet, when the due date arrives, payment does not. Unfortunately, unpaid invoices hurt the cash flow of your business. So how do to get your customers and clients to pay AND pay timely for the invoices you send? Let’s talk about collections! Often, the thought of collections leads a few to envision a threatening, low life thug with a hairy chest and big hands, dressed in a pin striped suit, who

As soon as you get the receipt, whip out your smartphone or tablet, and take a picture. The IRS accepts photos of your receipt. Furthermore

“I don't need receipts. I can use the bank statement.” How many of you have said that? I’m raising my hand because I once did. I specifically said that when I was working as an auditor for a CPA firm, where supporting documentation was, and is, a must. Many freelancers, entrepreneurs, and other small business owners have made the above statement. And that statement is not wrong. However, it can be improved upon. Your bank statement is fine. With receipts, however, the integri

Unpaid invoices hurt the cash flow of your business. Rather than turn to the default solution of increasing sales, look into improving the way your business manages its accounts receivable. What is accounts receivable? Accounts receivable (A/R) is the amount your customers or clients owe for services provided or goods that your business sells. Your client or customer does not pay for the service or item right away, therefore accounts receivable is an “I Owe You”. Let’s look a

I always request to have access to a prospective client’s QuickBooks Online or Xero account (if available) for the purpose of understanding their bookkeeping needs. One thing I often notice is that most do not reconcile their bank or credit card accounts. When I asked about their reconciliation process, the business owners stated that they did not know they should reconcile their bank and credit card accounts. Some didn’t even know what a reconciliation is. Other business o

Cash flow. To improve cash flow we often focus on the larger goals that produce higher dollar revenues. Which means we don’t consider the small expenses because they are harmless. Specifically, small expenses are considered to be harmless because what’s a $1 here or $60 there when your business is generating so much more? The answer is, a lot. What if I told you that the small expenses could make a large impact on your cash flow? What if I told you those small unnecessary ex

I'm a smart person. No, really, I am. Want to know how smart I am? I am so smart that most often I get in my own way. ...which...is...not...really...smart. So, I read various books, blogs, and emails and also listen to the occasional podcast that remind me to get out of my own way. Today, Ramit Sethi reminded me to get out of my own way. Just in case you don't know who Ramit is, he's a guy that will teach you to be rich. You might be wondering what this has to do with acco

Happy New Year and Happy New Beginnings! As someone who once worked as an accountant for Fortune 500 companies and two of the Big 4, I honestly find cloud accounting software, like QuickBooks Online (QBO), to be a breath of fresh air. It is one system that can grow as your company grows. I’m going to repeat a key word: ONE The companies and firms I once worked for had multiple accounting systems to support their business. Multiple systems were needed because each did somethin

Outsourcing the bookkeeping saves the small business money.  The business avoids paying full-time or part-time wages to an in-house bookkeep

I see this all the time. Whether it’s on Craigslist, CareerBuilder, or Monster, businesses are seeking experienced bookkeepers. The ads often ask that the applicant have 5 to 10 years work experience, with industry specific bookkeeping knowledge, and a willingness to take on non-bookkeeping projects. Experience using QuickBooks is also a must, with an unspoken preference for a ProAdvisor. Compensation: $15 per hour. …maybe $20 per hour for the super-human candidate. Using the