Do some of your customers pay on credit? If so, do you know how long it takes your business to collect payments from said credit sales? If not, it’s time to get to know day sales outstanding (DOS). Learn all about day sales outstanding and how to calculate DSO like a pro below.Read More What in the World Is Day Sales Outstanding (DSO)?
It’s always great when a customer buys from your company. But what happens if the customer receives the shipment and realizes there’s something wrong with the order? Maybe the shipping costs are too high or the products aren’t exactly what they want. Whatever the issue may be, you’ve got to put in extra work to […]Read More Making the Sale With a Good Faith Agreement: What Is a Pro Forma Invoice?
Your roof starts leaking. So, you hire a contractor to put in a new one. At the end of the job, you receive a piece of paper—an invoice—from the contractor billing you for their services. And if your business sells goods or services to customers and doesn’t collect money immediately, you’ll also have to send […]Read More That’ll Be $400, Net 30—What Is an Invoice?
Offering credit to your customers can be a risky, but rewarding, endeavor. You need to weigh the pros and cons before you offer credit to customers.Read More Offer Credit to Customers: The Pros and Cons
Invoices and statements are regularly used in business. You send invoices and statements to bill customers. And, vendors send you invoices and statements so you know how much you owe. But, what is the difference between an invoice and a statement?Read More What Is the Difference Between an Invoice and a Statement?
When customers make purchases on credit, you expect them to pay you. If they don’t, it can be frustrating and hurt your business. You need to know how to write off bad debt when this happens.Read More How to Write Off Bad Debt
Do you struggle to collect customer bill payments? If you do not charge your customers the total bill at the point of sale, you need a payment policy to guide your customers through the payment process.Read More Create a Customer Bill Payment Policy for Your Small Business
So you’ve brought your product or service to market and are generating revenue. You’re well on your way to creating the business that you dreamed about. However, there could still be bumps in the road that keep you from collecting your receivables. Such as an NSF check from a customer. Not familiar? Let’s consider the […]Read More What Is an NSF Check? | How to Handle
Do you extend credit to customers at your small business? If so, you need to record these transactions in your accounting books. Depending on the method of accounting you use, you might need to track accounts receivable. What is accounts receivable?Read More What Is Accounts Receivable?
Collection agencies help businesses secure payments from late-paying customers. If you are struggling with your collections, you might want to hire a collection agency.Read More When to Hire a Collection Agency to Get Your Receivables