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Ever heard of the saying that “a sale is not a sale until the cash is in your bank account?”

If we you were paid for your sales the moment that you made them, you would never have a cash flow problem.

Unfortunately, that does not always happen in many businesses.  Credit is a privilege (not a right) and too many customers seek to abuse this trust and often never pay for the service or product you have supplied. Read the rest of this entry »

Accounts receivables are the amount of money that a consumer owes a company for a service or product obtained on credit. Accounts receivables are therefore a company’s sales that have not yet been paid in cash. While accounts receivables are considered as currents assets, it remains difficult to consider a product or a service as sold or purchased unless it has been paid in cash. If your company regularly makes a sale on credit and you do not implement and maintain an efficient accounts receivable system, the cash flow in your company will be negatively affected. Read the rest of this entry »

Every small business accounting system has following key components.

1.Chart of accounts
2.General ledger
3.Accounts receivable
4.Fixed assets
5.Accounts payable
6.Payroll

Even if you hire an outside accountant for all your book-keeping and payroll management, we should understand the basic elements of accounting system. Read the rest of this entry »

What if your financial coordinator (FC) never had to deal with slow-paying patients again? Cash flow would be healthy and consistent, you would have plenty of money to invest in your business, and you would lower her stress level and yours. Would you be interested in a way to make this happen? I am certain your FC would!

For many orthodontic practices the reality is that some patients treat your unpaid statement like it’s a free loan. They dismiss phone calls and letters, haggle with your FC and threaten to report you to the ADA for ‘abandonment’ when she tells them treatment must be discontinued. They will do any or all of these when they do decide to pay after 60, 90, 120 days or longer. But there is a proven way to get paid faster and on a consistent basis. Read the rest of this entry »

Customer bills that are unpaid after the terms that were set are considered past-due accounts.  Many business owners and managers have a billing processes, but no process for collecting on past due accounts.

One of the biggest dilemmas small business owners face when managing a business in collecting on past-due accounts. Why, do we have a fear of contacting clients or customers who owe us money?  Most business owners avoid calling a client of customer on a past-due account, they prefer to send a letter, which do not bring results.  Here are a few step to collecting on past due accounts. Read the rest of this entry »

An accounts receivable system is a system that is totally integrated and is a consistent sub-system of general ledger systems. It is designed to generate computerized invoices through to the receipting of generated invoices.

Most accounts receivable systems have the ability to generate a variety of reports such as ledger prints, retention reports, age analysis reports, cash expected reports, and account analysis reports.

Selecting the right accounts receivable system for a particular business is not easy since there are no perfect systems. Every system has its strengths and weaknesses. Selecting any accounts receivable system always involves some compromises on the part of the business. Read the rest of this entry »

Each time you pick up the phone to execute a collections call, arm yourself with a positive attitude. The energy you portray in your voice will unconditionally dictate the results you receive. Keep a smile on your face, although the person you’re speaking with may not be able to see it, they will inevitably hear it in the tone of your voice. Read the rest of this entry »

Is your cash flowing out faster than it’s flowing in? This can happen for a number of reasons and can be a sign that your business is growing at a faster speed than you are ready to handle. Perhaps your best customer has given you a $100,000 order — but you need cash right now to buy the supplies needed to produce the product. Read the rest of this entry »

Cash is King…That is what everyone tells us and it is true! You cannot function successfully in any business without proper cash flow. So if this Cash Principle is so well known, then why is it that so many businesses struggle? Sometimes the obvious is not always so obvious when you are entrenched in running the day-to-day aspects of your business. Here are 7 Tips to Improve Your Cash Flow! Read the rest of this entry »