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Get Paid on Time, Every Time with an Accounts Receivable Process

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Believe it or not, many business owners struggle to get paid on time. Not because they don’t have a strong, profitable client base, but because they lack a reliable system for managing a project from start to finish, including receiving payment for a project completed.

With day-to-day operations and production getting much of the focus, it’s common to overlook cash flow until there is a major problem. Unfortunately, poor cash flow has dire consequences, like the inability to restock inventory, pay salaries or rent, interest and late payment fees, and restricted growth opportunities to name a few.

These negative effects can be drastically minimized, however, by creating a well-planned and documented Accounts Receivable process. Even when problems arise, you will greatly improve the cash flow of your business by ensuring that billing and payment collection occurs on a regular schedule.

In this presentation, we illustrate an easy three step process you can review with your own accounting team to determine areas where you have potential for improvement.

Keep in mind, your system can be customized to your needs.

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Get Paid on Time, Every Time with an Accounts Receivable Process

  1. 1. GET PAID ON TIME,EVERY TIME with anAccountsReceivableProcess Equilibria,Inc.
  2. 2. You Need Moneyto Run Your Business There’s nothing worse than waiting to get paid for goods and servicesalready rendered.
  3. 3. Don’t Get Angry with Your Client, Take Action! You DON’T havetouse mafiatactics to get paidon timeandpaidinfull... but you DO need to get tough with your process
  4. 4. All small businesses havea process forgetting paid, even if it does not work very well.
  5. 5. www.eqbsystems.com Can you identify your process for getting paid on time, every time?
  6. 6. AccountsReceivable Process might bethe answer! HowCan You Improve Cash Flow?
  7. 7. A PROCESS is a visual representation of a Standard Operating Procedure (usually in a flowchart). A Standard Operating Procedureis a written, step by stepplan with a repeatable way to produce results (getpaid ontime). 1. Tell them what you’re gonnatell them. 2. Tell them. 3. Tell themwhat youtold them. 4. Questions? 4a. If yes, then answer question. 4b. If no, then end presentation.
  8. 8. LET’S GET STARTED!
  9. 9. What people, tasks and technologymust first bein place to start the project? Write it down. STEP 1 Start from the Beginning Accountant/ CPA Bookkeeper PEOPLE  GenerateReceipt  ReviewAgingA/RReport  Reconcile Books  DepositPayment  CreateInvoice  AcceptPayment TASKS TECHNOLOGY Accounting Process Templates Available Here
  10. 10. How do you ensuredelivery ofgood product or servicethat clients will not want torefund? Write it down. STEP 2 Figure out How to Meet Client Expectations Accounting Process Templates Available Here Earnings Process Complete Exchange Transaction Revenue Recognition
  11. 11. Howdo you currently receivepayments? Write it down. STEP 3 Keep the End Result in Mind Accounting Process Templates Available Here
  12. 12. What could go wrong when you receivepayment? How will you react? Write it down. STEP 4 Play “Devil’s Advocate” Accounting Process Templates Available Here Checkbounces Creditcarddeclined Received wrong credit cardinfo Customer files a credit chargeback Cash is counterfeit
  13. 13. Use the info from Steps 1 –4. STEP 5 Write out the entire procedure Accounting Process Templates Available Here
  14. 14. Youcanalso create aprocess map/flowchart to visualize yourStandardOperating Procedure. Accounting Process Templates Available Here Click here to download this flowchart FREE!
  15. 15. Summary to Better Cash Flow PROCESSINPUTS OUTPUTS • People • Tasks • Technology • Service or Product Delivery • On-TimePayment • Paymentin Full www.eqbsystems.com
  16. 16. Thankyou for yourtime! Please giveus FEEDBACK in the Comments section below. It’s Time to Get Tough with Your Cash Flow! Sign up forour monthly tipsandreceive a FREE version ofthe Accounts Receivable Standard Operating Procedure andProcess Flowchart templates used in this presentation. Click here torequest a FREE one hour phone consultation if you want help creating your veryown Accounts Receivable process.
  17. 17. ImageCredits Page1: http://pastorrodneylord.blogspot.com/2012/11/paid-in-full.html Page2: http://lilspydermunkey.wordpress.com/2013/03/02/its-not-a-girl/ Page3: www.sheleadsmedia.com Page6: http://babiesjoyful.blogspot.com/ Page10: http://www.principlesofaccounting.com/chapter3/chapter3.html Page11: http://www.1stclasstraveltaxis.co.uk/payment_methods/payment_methods.html Page12: http://www.pic2fly.com/Devil+Pitchfork.html Page13: http://eqbsystems.com/smallbusinessprocesses.html Page14: http://eqbsystems.com/smallbusinessprocesses.html Page16: http://theinfothority.com/

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