You did everything right in your business! Now it’s time for the reward
Getting paid by your customers in a timely fashion is one of the biggest challenges of being a business owner. QuickBooks can help you in several ways to accomplish that.
If you are meeting your sales goals and keeping the inventory balanced, make sure that every billable hour gets invoiced. You can take advantage of vendor discounts as well. Basically, you can do everything in your power to keep the cash flow humming.
Since you can’t control how quickly your customers pay you, you can try and use the ‘QuickBooks’ tool to:
- Make it easier for customers to remit their payments.
- Remind customers about unpaid balances.
- Keep a closer eye on unpaid invoices.
You can, of course, offer customers a discount for paying early. That may work in some cases. However, accepting credit cards and e-checks/ACH is likely to be more effective. It also has other positive impacts on your business including a more professional image.
Time Savings for You
How much time do you spend logging checks and running to the bank with deposits? It is much convenient and faster to simply record a credit card payment.
Convenience and Goodwill for Customers
Your customers will appreciate the time that they will save which translates to a feather in your cap.
There are extra costs associated with setting up what’s called a “Merchant account.” But once you do so, you will be able to invoice the customers in QuickBooks and let them pay immediately by credit card. If you ever have an occasion to accept payments out of the office, you can use your smartphone or tablet to accept them.
We would like to see you take this positive step for your business. Let us know when you’re ready. We’ll help you with the setup and implementation.
In Addition to Invoice Statement
Statements are just what they sound like: detailed summaries of what each customer owes over a period that you email or print and send by U.S. mail.
QuickBooks makes this very easy. Periodically you may need to send the statements for opening balances to all your customers. This allows you to be on top of your outstanding receivables and manage your cash flow for your business.
As a small business owner and/or manager, there are certain QuickBooks reports that you should be looking at frequently. One of them, Open Invoices, gives you an instant status update on your outstanding receivables. But it’s important that you set up the report to have the exact information that you need.
Make sure to run Accounts Receivable Aging Summary/Detail to find out open balances for the period that will help you take prompt your receivable collection.
It is possible that you may need other Small Business Bookkeeping reports with critical business analysis to properly navigate through your business environment. If you need help, let us know and we will be glad to assist you in all your accounting needs for your business operation.
Ben Derebie, MBA, CMA