A common question we hear all the time as a collection agency: How can I improve cash flow in my business? It’s one of the main questions collection agencies get.
There are a number of things you can do to keep up on cash flow at anytime during the year, whether you’re a lawncare or landscaping professional, plumber, medical or dental professional or any other type of service industry. I’ve been working in debt collection for over 20 years and I’ve seen many mistakes that could have been solved with just a few extra resources and thought.
Here’s a couple and more to come in future blogs:
Always bill on time: Carve out a time each month or at the interval you bill and stick to it. Yes, there will be snow days when the kids are home that might throw you off a day but as soon as you can get back to the office, make sure you set that time aside and get those invoices out.
Something many don’t talk about is professional accounting software: Get your business on some type of software for your accounting. There are many types out there including the very popular QuickBooks. This software will keep you on track and in some case automate your billing including mailing invoices. You may also want to check within your industry as there are many industry organizations that develop industry-specific software that can help run your business. Our APRweb integrates with many of them.
Take care of the back end of your business first: There are many collection agencies that are happy to take your money regardless of what you’ve done in the past with your accounts receivables. We advocate doing what you can internally before getting us involved. That does not mean waiting a year, however to give us these accounts. If you’ve worked them for 60-90 days, it’s time to get professional and diplomatic help.
See you soon with more cash flow tips.
In the meantime, check out this quick video on cash flow.