National Small Business Week is May 4-8 this year. As a popular saying goes, small business is the backbone of our economy. And if you look at the past several months of Jobs Reports, you don’t need any more proof. Small business has led the way in job growth for many months and the trend continues as our economy gets back on track.
A small business is classified as any business that has under 50 employees. But many small businesses have far less than that. And the resources they need to conduct a whole host of tasks can be limited because many are serving the customer, as they should.
This is far too often the case when it comes to getting some customers to pay on time. In many small businesses, the accounts receivables program can be improved and certain parts of that program can be outsourced.
Here are a few tips for getting your small business receivables back on track:
Good Information: Always obtain good information from anyone your business extends credit to. That can be for a product, any type of service and in the case of medical and dental, it can be a co-pay. Anytime you have to invoice a customer, you are essentially extending credit. See our video on what types of info you should get from a customer.
Invoice on time: We just can’t say this enough. Many times when we speak with a small business, we find that invoicing can be sporadic. A small business relies heavily on cash flow so it’s vital to make sure that invoicing is done on a regular basis. Whatever that interval is, stick to it.
Get help: By outsourcing your accounts receivables, you can save your small business time, money and a whole lot of headaches. Your staff can focus on making customers happy, you can grow your business and in the process, your cash flow will improve.
For more on our experience with small business, check out a past video we did on the subject.