Month: October 2015

prevent delinquency Disaster

Sometimes, late payments can teach the business owner rather than the customer. Customers dragging their feet on payments if they are not satisfied with the merchandise or if they get inadequate customer service. Address customer complaints can speed up payments and keep the business profitable. Of course, there is always the occasional bad customer, but customers should not angrily attacked late payments. This can ruin your professional relationship and cause you to lose valuable customers.

It may be possible to save hard to deal with problem customers with vetting the advance. Running a credit check can save you time and money in the long run. Some companies offer affordable credit check prices to small business owners. The information you get from your credit report will help you determine if you want to stop taking certain customers.

If bad customer manages to make it through the screening process, you have no choice but to stop supplying that customer until you have added. This is not a step to be taken lightly, but it may be necessary. For example, a customer who is three months behind on payments should not benefit from the goods or services for free. If bad customers know they can get the product without paying for it, they will take advantage of the situation.

It may even be necessary to look into the professional collectors in extreme cases. May lose a client may seem like a bad business decision, but keep around which refuses to pay is even worse. Bad customers only serve as a drain on time and resources, it is always best to cut them loose

Make your customers knew Payment rules :.

Always outline the billing process and keep slush fund. While this may seem simple, not too many small businesses do not apply these rules. Clearly aware billing and payment rules leaves customers no excuse for paying late.

is expected policy should provide an acceptable form of payment and the date and time of payment by the customer is invoiced. It is important to follow these rules once they are established. Break your own rules will not encourage customers to follow them. You set the standard, and if you wait a month to even send a bill, it does not create a sense of urgency for your customers. Take time each week to send out new accounts and follow them out now.

It might also be wise to start a penalty fee of 3% on late payments. This serves two purposes :. It gives clients greater incentive to pay on time, so as to avoid a penalty fee, and also helps to negate the effect check cashing fees or reach their late fees the bank

A slush fund acts as a reserve and provides a cushion should the client will be a few days late on a payment. This will help keep you on payments now while you chase down what is owed to you. A good rule of thumb when establishing a slush fund to reserve large enough to pay rent, salaries and services for at least one month. Hopefully you will not use it, but it can keep you from being labeled as a bad client.

Unfortunately, late payments inevitable. Even with careful observation and clear instructions, customers sometimes “forget” to pay on time. There is nothing wrong with chasing down payments as long as it is done in a professional manner. Often polite email or call all customers need to remind them and resolve the issue

make it easier on customers :.

Some companies benefit from offering incentives for early payments or payments on time. Offering financial services or benefits to customers who pay on time sense. Not only does it give them added reason to pay their bill, it builds customer loyalty, and you want loyal customers who pay their bills on time. A two percent discount for paying within 10 days from receipt of invoice is typical in many companies. However, finding more creative incentives such as reward good customers can differentiate a company from another.

Accept as many options as possible to make it easy for customers to settle their accounts. Businesses that take only cash or guarantee, not make life easy for its customers. People seldom funds and responsibilities of others, such as money orders, are not free and take up valuable time. Although there are usually fees (up to three per cent) are connected to suppliers that accept credit cards, they may be worth checking out, especially if you have customers who use a credit card rewards.

In addition, banks are competing for small business and could have some affordable options that make your life easier. Look into the possibility of electronic transfer. This makes it easier for customers to pay their bills, and makes sound business sense if you have several repeat customers.

speech late payments to customers is never easy, but it must be done. There is no reason to make threats or become impatient. However, there is every reason to collect what is owed. Remember that late payments have an impact on cash flow, which determines how long your small business will survive. Highly uncertain economy needs small business owners to be extra careful when they are to monitor their payments and their cash flows.

For more information on how Bridge Capital are Accelerated cash flow solutions for business in Suffolk and Nassau area of ​​Long Island, NY; Please visit our website for more great information on http://www.bridgecapitalsolutionscorp.com

bidding system belongs to a company time. It is the process of sending and processing bills or invoices to customers. This type of bill business often use the Internet, especially on a third corporate entities. Such companies present an account of the large companies that have large customer bases as electricity suppliers.

Electronic display system is designed to be used as a killer application online for business companies find ways to reduce or minimize the cost of distribution accounts and make the transaction processing. Unluckily, the reality is so far to live up to commercial distorted environment consumers suitability of these products.

With this modern software programs like Quicken for the display system of electronic bill, consumers were expected to change their traditional way of processing invoices because of this they are only required to use the Internet. Low Performance invoice display system was taught to input requirements for the collection of information is still paper based. The Internet serves as a vehicle to send or deliver e-invoices or bills. With the ability to pay and get an online account, the expected implementation of electronic bills payment to take off. But many are still not aware of this because as polls suggest, a little less than 5 million households know how to begin the process invoice display system.

Today, e-bidding system is still infected with the “chicken and egg” syndrome because consumers want to use it if large their accounts are available on the Internet while billers are also ready to present accounts of electronic if demand costumes’ grows hair for it. But not all the time display system may apply. In the United States, some authorities do not allow the use of electronic bidding system of the bill to pay taxes, collection agencies or any court ordered payments.

Electronic display systems strengthening costumes and billers to view and manage accounts online, and this is to increase customer satisfaction. More and more people today are going paperless with this e-billing, they can now browse and make their payments online and this one can make an effective self-service all aspects of their accounts. This is a very flexible way for costumers to manage and update their accounts. They expect to maximize the use of the internet for their comfort so that they can reduce the pile of papers because they can now all through e-mail. If you are having a great time reduce paper clutters home, start it now and try e-bill.

In January 2008, Inc. Magazine, “short of money?” in Finance: Cash Flow column, the case was made to discount factors were comparable annual interest rate of 12 times factoring yields. This hypothetical 12 times interest is then compared to a bank loan at a competitive annual. For this article meant that monthly factoring discount of 2% is equivalent to 24% annual return. This is actually a misleading comparison of apples and oranges. In fact, 2% elements yield equivalent to 2% annual return, but to understand what we need to go into some detail.

The Standard 2% Net 10 Supplier Discount

We will start with the situation with typical supplier discount to its customers, 2% net 10. This is where the supplier has offered to self-factor Customers with a 2% discount on the invoice price if they pay within 10 days. In this first example, the customer takes the discount and pay by day 10. So, the client pays the customer $ 1,000 less 2%, or $ 20, for a net payment of $ 980 per day 10.

Let’s calculate the effective interest rate path submissions. Use this same mathematical logic, to ten days at a time on this 2% ten days is equivalent to the rate of 6% at 30 days, and 6% times 12 months, 72% for the year. Now 72% of the $ 1000 $ 720, so based on this argument, how the customer was paying $ 980, and not just $ 280? The answer is simple, the money was only used by customers in 10 days, not in a year, and factoring discount is not interest rates but charge for the use of money under specified terms 2% net 10

Now let’s consider this happens once a month. So in the end, the client sends twelve notes for a total of $ 12,000 to the customer. Each month the client was 2% discount and maintained a total of $ 240 a year. Now, $ 240 is what percent of the $ 12,000? The answer is 2%. So in this case self-membered client yield of 10% pure 2 equates to annual interest rate of 2% and not 72% or 24%.

Receivables Factoring

But what if our client not take 2% Net 10 terms and instead pay later? Some customers ignore all customers 2% net 10 terms and pay when they want, which can be 30, 45, 60 or even 90 days. If the customer does not accept the terms of the customer, the customer buys the rest from someone who will. Or for some companies, especially the larger ones, systems and cash management processes make it very difficult to pay less than 30-90 days. So if a customer wants to large customer business, they must accept the terms of the customer. In this case we will use 30 days.

What is the real cost factors? Let’s describe the main scenario first and then look at comparative costs. The supplier has a contract with a factor and has become a customer is a factor. In this scenario we will factor accounts of $ 1,000 per month in 5% yield and 80% in the payment of the invoice amount upon verification of a factor with 20% hold back until the bill is paid by the customer client.

So under the terms of the factoring agreement, instead of waiting 30 days, the customer has sold the account, the face amount of $ 1,000 to the factor. The factor will pay the customer $ 800 less $ 50 (5% discount) delivery system and account verification. The remaining 20% ​​is held back by a factor of where the customer pays the invoice in full. The client, or the debtor pays the account on the day of 30 episodes will pay the remaining $ 200 to the customer on day 30

This process is repeated every month. So the net effect is that every month the client components of a $ 1,000 account and receives from the aspect of $ 750 per day and $ 1 200 per day 30. So for a full year, $ 12,000 worth of invoices have been received a discount of $ 12 times 50, $ 600 or $ 600 is 5% of the total $ 12,000. So in 30 days eg discount factors are relatively equal rates. Thus, the yield of 5% not 60% and 5%.

So what is True Factoring Equivalent Interest?

The factors yield no interest but a fee for using the money, paid once the terms of the period in question. So when comparing factoring to bank loan annual interest rates, yields equivalent annual interest rate and not some multiple thereof. So 5% yield equivalent elements, five times twelve or 60%, but 5 times 1, or 5% annual return.

Supply Chain Finance can also be known as Supplier Finance or Reverse Factoring. The term “supply chain” in this context is used to refer to the network of organizations and activities relating to the production, distribution and paying for goods and services with one or more suppliers to a single customer. For example, a large company present of numerous smaller companies. “Supply Chain Finance” is engaged in providing finance to a number of supplier companies, within a supply chain under one umbrella mechanism that has been initially set up by the customer at the top of the supply chain.

Examples of Supply Chain Finance was in a supermarket to buy products from a variety of smaller suppliers. The supermarket will arrange Supply Chain Financing agreement with funding such that all their suppliers have the ability to access finance under the umbrella agreement. This is often provided at competitive rates which reflect the size of supermarkets the company rather than the size of the company supplier. In this way, suppliers benefit from the arrangement as they are able to access finance at a much lower rate than they would normally be able to achieve in itself.

Some arrangements can be as simple as financing outstanding sales invoice to the store or similar large enterprises, but in some cases may be other services bolted on arrangements to improve the management of the entire supply process.

Benefits of Supply Chain Finance

Benefits of Supply Chain Finance to large companies organize it because of their suppliers is that they are able to enjoy a period of credit from their suppliers. These are funded at competitive rates by individual suppliers which may not have been able to achieve in his own right. This will encourage its suppliers to continue to provide the level of credit when they may not otherwise have been able to afford it.

key benefit of perspective suppliers within the arrangement is that they are able to access finance at rates that would normally reserved for companies that are much larger, for example, national or global supermarket.

In recent times we have seen several examples of this type of arrangement established with several major companies, and these kinds of arrangements can be provided with a number of funders also provide more traditional invoice finance and factoring facilities.

Alternative supply chain & Factoring Reverse Factoring

However, the Supply Chain Finance or Reverse Factoring arrangements may not always be the right answer for a particular supplier that it can often be other issues that cause the supplier to seek a facility that is independent of their clients. Examples might not want their funding to connect with their customers. The record of Supply Chain Finance arrangements can not be agreed among suppliers to specific business and each situation must be examined on its own terms and relative to other options available independently within the market.

The Future

Although Supply Chain Finance seems to have taken off relatively slowly in the UK so far there are examples of new arrangements come as the product is likely to feature increasingly in financial Invoice.

Even with computer based financial system and procurement system in place, the old standby purchase order is a system of placing the order for most organizations. The PO is an agreement that commits the buyer and seller to conduct business.

Unfortunately, even with the technology, purchase orders are still received by snail mail to the suppliers. This is one area of ​​the procurement process that can add time to the procurement cycle. Of course you can always fax Po to the supplier, which has cut down on the time, but the PO still needs to have certain information before the supplier can fulfill product.

Essentially, purchase order form, a contract that the dealer know that you have the money and approval to make the purchase. Even more important for the seller is that when they have a valid PO they know they are going to get paid for goods or services.

As a seller, there are 5 factors Purchase Order that must be in place to allow fulfillment to continue

1. PO Number – the actual number that has been assigned to be set. This is important information to them as well as accounts payable person, to pay the bill after it has been received. Purchase Order Number is a link to the seller paid.
2. Ship To Address – this determines the location where the items ordered to be moved
3. Bill to Address – this determines the address of where to send the bill
4. Item details – exact items the customer wants to buy
5. price – the price of each item and the total amount of the purchase order

In short, the purchase is a binding contract with your supplier to purchase goods and services based on negotiated prices and terms. Without the purchase requisition, the supplier will probably not ship products for fear of not getting paid.

Factoring has emerged as one of the most favorite ways

provide cash flow to the company. When companies have

money they are able to pay bills quickly and exploit

vendor discounts. In fact, companies can run smoothly and

more effective factors. Factoring is the process

accelerate cash flow by selling credit worthy Accounts

accounts for cash. This narrative tool has been

for years and has evolved into a powerful way to

small businesses to thrive and compete with large companies. As

small business grows, they are able to offer flexible selling

terms to customers. This puts strain on cash flow and creates

need of urgent cash. Therefore, by Factoring accounts, a

companies can offer flexible terms with the confidence that they

will have the cash for the sale within a short time

There are two types of factors. Recourse factors and not

catch elements. Recourse factoring makes factor to go

back to the seller if payment has not been received, on average by 90

day period. The factor relates to the debt transfer back to

creditors recourse factoring process. Therefore,

cases where customers default, the seller must buy back

accounts of a factor. This is the most common type of

factors worldwide. Unlike recourse factors, not

catch of factors puts the risk of non payment in full

factor should customers do not pay. The element can not seek

reversal of debt transfer back to creditors. This

appears favorable Factoring method for both seller

and factor. As for the seller, when he has sold credit

worthy accounts, acquisition and credit risk out.

The episode, however, will eliminate the risk by buying only

solid credit worthy accounts. This will also enable factor

establish and maintain long-term business relationships with both

vendors and credit worthy customers. The cost is usually

higher for this factoring process because factor expected

greater risk.

However, the best aspects of solutions will depend entirely

how companies feel about their customers. If customers pay

accounts on a regular basis, then recourse factoring will provide

best solutions with less components fees. Non recourse

factors will be more appropriate if the elimination of unreliable credit

customers is the main goal. As much as it comes with more

price factors, the peace of mind that comes with models

companies willing to pay more and risk less.

Invoice and Accounts factors that stands out

as a very effective method because it makes it possible for

company to offer flexible sales terms to customers. This

increases sales opportunities with credit worthy customers apart

to provide direct access to cash. Unlike other business

methods, factoring utilizes the credit quality of customers,

allow the company to get more working capital than banks

lines of credit can usually offer. Factoring is also

chance billing assistance from courteous professionals

when requested.

If you are looking to accounts Factoring company, then Diversified

Financial Services is a smart choice. Financial Consultants Our

ready to answer all questions Factoring. Call today 800-954-0012.

home based business owners to manage multiple projects and accounts is one of them. Part of the cycle includes knowing how much money people owe you for the products or services you provide. It also includes keeping tally of the balance you owe to vendors.

To stay on track here are some ways to monitor accounts receivable and accounts payable.

Trade

grace period is the money that customers owe for goods or services that they receive the bill. For example, customers are charged for services may be allowed to pay within 10, 15 or 30 days. The best way to track accounts receivable is

• Set up an account for each customer
• Use the contact information, date, amount and due date of each invoice. This allows you to review the account and follow up with your customers.
• Mail accounts after work and mature account.
• contact accounts that are thirty or more days past due. Generally, the longer balance remain open will be less likely to get paid.

Trade

Also, realize many business owners to stretch out the time to make the payment to the supplier improves cash flow. Company sliding payable when it receives goods and services from vendors, but may pay a place in the future. Some examples of when you might have accounts payable, are telephone, payroll liabilities and procurement of supplies. When checks payable be sure

• Set up accounts payable for each vendor and containing their contact information, amount, date of the invoice maturity
• Update balance to reflect the payments that you make.
• allocate funds for future payments within five days of the due date
• to save time, pre-program electronic payments through your bank account or set reminders in the accounting system to print checks

Having and payable system’s benefits for your business. Use the information to prepare weekly reports so that you can monitor the inflow and outflow of money. Learn more about reporting and forecasting of http://www.tbsusa.com

New accounting firm?

Then you are probably not sure how much to charge for your services. This is the company expected bookkeepers and other consultants as well.

When I started my accounting in 1999, so was I. Here are some tips on what to charge.

One lesson I learned quickly is that everybody wants a deal and they think that you should give them one, but once you do, they will underestimate the service and consider it to be permanent discount.

Do not make the mistake of charging too little – Use rewards incentives and bonuses for new reference customers instead of lowering the price for each customer. Even when can be “Kiss of death” to give your balloon.

Do not guess at how much to charge, either. When you start you need to seek out other professionals in your field and simply ask them what interest rate they are charging in the area. Ask them if there is a sliding scale, and if so, what criteria they used to determine the parameters of

Here’s what I figure -.

Small business customers would rather pay a flat fee and hourly rates. Most bookkeepers charge an hourly rate, but will charge a flat fee based on the number of transactions that need to move, plus $ 5-10 (if they do not know the customer in advance). You must also calculate these costs in your calculations -. Workers Compensation, self-employment tax (10% for the United States), and business insurance

is based banks and credit card reconciliation, data entry and a set of monthly economy you have to work 2.5 minutes per transaction. Each entry data transaction is “2.5.” So, if you have an average small business with 200 transactions per month, you need to load 2.5 minutes in record lows.

Experience tells me that some records will take more time and some items will take less time, but from beginning to end all the entries made will balance out in 2.5 minutes apiece. At the rate I charge that means a monthly flat fee for this customer as 2.5 times the number of entries divided by 60 minutes Total time fee (360 2,5 x 45 x $ 200/60 = $ per month flat fee).

Not all bookkeepers are willing to share the fee structure with the other, so do not be afraid to ask a few bookkeepers what they charge for the beginning of the reference. You will find that there are price ranges from $ 16-60 + per hour. Select one of the discounts that feels like it covers costs and still holds you accountable as an expert in your field. If you charge $ 16 per hour then you really need to get more experience and / or education to be taken seriously. Accounting Accreditation is one way to do it. Check with your local chapter of American Institute of Professional bookkeepers for accreditation.

If the customer seems anxious for a fee then ask them if they would fancy set records presented to the auditor of the end of the year with no problems, and if there was a justified way to think about the fee. If they hesitate even then you are best advised to help them find someone else.

The benefits of hiring a bookkeeper is also the fact that full-time employee and labor costs are out, computer hardware and software and increase office space and storage for accounting for are not necessary.

$ 25-45 is the average cost per hour for a good accountant who knows the business. For higher hourly rate you are paying for a bookkeeper who works with the auditor. Those rates reflect the fact that they work with professionals who oversee their work and the higher rate is symbolic tax professional review of listed companies before they go out the door to the IRS or CRA. It is worth the extra expense for a lot of customers. For others it is not, and these people probably do not make the best customers for experienced bookkeepers.

When you create accounts for their customers Billings, briefly rewrite the work you did for them (clients) in the body account for them. There is really no need to add all the items on the list of the services that you gave them. You want to include 2-5 sentence summary for your clients so that they understand what they are paying for

TIP :. If you have a large amount of your bill to introduce them then try to break it up into 2-3 separate accounts in relation to the month. Customers will need to do their job, but no one appreciates a huge bill at the end of the month without notice. Those circumstances lead to ill will and short-term customers. Longevity is the key to owning and operating a reputable and long accounting firm

invoice descriptions are :.

“Accounting services provided in November, with but not limited to, the following: Bank and credit card reconciliation reports for October statements, cash receipts journal, cash Payments journal, general items Journal (for those on an accrual basis accounting. General calendar and statements, trial balance, general letter ledger. If you performed payroll service then add “payroll preparation,” “submit quarterly payroll tax,” etc.

big picture and some details help customers understand why because you bill as you do. And why you are worth it!

If you moved more services you choose to go as un-billed go ahead and add it to your account as a note at the bottom of the registration as a service – for example: IRS calls to payroll version 3 hours without charge. ALWAYS say, “Thank you.” Never ask customers to call with questions about your account

fee for telephone consultation and training at reduced rates – . If you do not want to be coaching clients free and it just takes away valuable time that you can spend getting other jobs and customers. Time is money-Use yours wisely to grow your business. Do not nickel and dime customers – fax and copy should not be charged unless they exceed $ 20.00 to time and cost

Always invoice your customers on a regular basis -. At the same time every single month. Create professional invoices even if it is on an Excel spreadsheet. Use the last day of the month as a reference in the collection dates

Still looking for customers

-.? Look through the want ads for people who are interested in at 10-15 hours one week. Generally, these people are less interested in hiring an employee. Give them a call or send your business card and resume and cover letter explaining why the service is good for them -. Outline the benefits for them and ask for a call to discuss it

– Participate in local networking group. I found Business Networking International (BNI) not only helped me with professional public speaking and self-confidence, but they also gave me a steady and reliable stream references every week as my business grew and kept me occupied. The cost of membership paid for itself in just one week.

Good luck!

The first screen of the Sales Order Entry Sales Order making the move. Based on a series of brand entered the system shows the second screen. The below are the most important types of reservations within SAP.

1. MTO Order

2. Parts Order

3. Returns

4. Credit memo request

5. Debit memo request

6. Invoice correction request

MTO series type is used for items that will be produced according to customer requirements. To specify customer requirements generally variant configuration is used. When a sales order is created sales order creates a requirement in MRP. When MRP run (MD01 / MD02), the system creates a planned order. Planner change this planned series production. After the products are manufactured, the products are received at the plant with regard to the production order. Turnover is delivered when the goods are available, and will account out to customers.

Parts that used to sell stock items from the plant. the shipping date achieved system creates delivery notes (VL01N). Shipping Clerk ship products and make post goods issue (VL02N). Post goods issue reduces inventory and increases the cost of goods sales. Account is issued to the customer in a batch job or manually VF01

Returns :. Provides order is created when a customer wants to return the product. Return series creates a return delivery document (VL01n). When the product reaches the plant or ware house Shipping Clerk receives the product and make a post goods issue in the system. A credit memo sent to the customer

Credit Memo request :. This order type is used to issue credit to customers. In general, the credit is given to the customer when it’s over billing or duplicate accounts. For this series is the delivery of presents

Debit Memo request :. Similar credit memo request a debit memo request is used to charge customers. When a client is less charged, issue debit memo, debit memo request is created.

In order type settings, delivery type, billing type controls whether a particular order type has a delivery or collection. For credit memo requests it will not be connected to any type of delivery. Sales brand board following.

1. Pricing relevency (whether is appropriate for pricing or not).
2. Billing type (related or Delivery Order related). Credit / debit memo requests always order-related billing
3. header text control.
4. Header output control
5. Variant for the screen.
6. Eligibility Billing
7. Eligibility delivery

Item categeory line level controls the flow of the series. One sale can contain two sections, one with delivery and another without delivery. Item category similar order type has similar control. Schedule line category which is associated with the item category determines the movement type used in the delivery of

Ex: .. One line item can be delivered from the consignment stock and another from unrestricted stock

minute payment can be challenging when working with small or established businesses. Cash may be king, but it is too tight and makes you grip it a little tighter these days. Waiting 60 days can seem like a lifetime when you have accounts that do not seem to get the same plan. The situation can be sharpens (I just learned this word and thought I’d try it out) when a new option that you are working with seems very promising and then asks for charitable payment. A dilemma presents itself as an opportunity to register customers and stop the cash flow statement the problem or risk losing business customers with everything.

When capital is not available, the terms can be extended by using bank financing to cover operating costs while waiting for the customer to pay. Get traditional business financing, as did, never seems to be easy. Unless your business is next to the perfect position, you’d have better odds make regular investments in the Powerball lottery for your funding. The financial alternative business financing is accounts receivable factoring. Invoice factoring is a great method to increase cash flow and offer terms that ultimately allows you to grow the business.

A factoring company will buy accounts and providing payment up front. The company will get an immediate funding that can be used for operating expenses and growth opportunities. The factoring company will account after they buy it. When the customer pays the invoice, the transaction is completed. When used correctly, invoice factoring allows you to offer terms that will make your customers smile.

companies find that aspects of their accounts has several advantages. Install Factoring account is easier than most traditional financing options and did not make you want to throw a significantly large office items through the window. Parsing accounts gives you predictable cash flow and eliminate uncertainty when you will get paid by your customers. Factoring lines are connected sales and grows as your business grows. Usually, there are many services that go along with factoring account such as credit checking, billing, follow-up and account management. This service allows you, the business owner, to spend more time running the business and less time typing toe and phone bugging your customers trying to collect. Let factoring company taking on the headache for you.