Posted on January 23, 2014
  Calculating your days sales outstanding can be a difficult chore in itself, but after you've heard the theory it still requires you be able to put it into practice in your accounting package to make it actionable. Today we'll quickly cover the basics of calculating DSO or days sales outstanding and then we'll move on to a practical example inside Quickbooks online. So let's get started: What is DSO again? So you've heard this one before, it's really the amount of time your invoices are outstanding and not being paid after you send them out to customers. Simple right? [...]
Posted on January 23, 2014
Terms like this get tossed about all the time, particularly by folks in the finance world who are used to dealing in financial terminology. But accounts receivable management is actually a pretty important term and topic for any small business so lets break it down into what it really means and why it's important. The real meaning The meaning behind the term is simply how well you handle the sending of invoices and the receiving of payment on those invoices. While this process might sound simple, think about how many steps are really involved. Creating invoices, sending them to the [...]
Posted on January 23, 2014
If you've ever had a customer pay an invoice late you know how hard that can be for your business and how much an impact it can have, especially if you didn't have a lot of cash just sitting in the bank. If this has happened to you don't fret, you're not alone, in fact at any one time almost 30% of all invoices are late. So what are some of the way you can get your invoices paid faster and on time. One of the first ways is to create a contract, nothing fancy, just a document that outlines [...]
Posted on January 23, 2014
As a business it's important to always watch your cash flow. It's the way you not only pay your bills, it's also the way you grow and sustain your enterprise. Get too low on cash and you can't pay your bills, danger Will Robinson, danger! Have too much of it around (not likely I know) and you could simply be underfunding your business and holding back on growth for your business. It's this care balance that is really the magic of cash flow. But how exactly does this dance work and where do invoices get involved? Think of the invoice [...]
Posted on January 22, 2014
  Your business's cash flow is the life blood of your business. You need it to survive and thrive. Every small business ends up having the same problem and it's not always an easy one. In fact one of the biggest reasons businesses go out of business is from a simple lack of cash flow. That doesn't mean they don't sell their products, it simply means that between selling and paying for the raw materials or labor the product requires the owner can't make the bills and has to close up shop. We put together these tips to keep you [...]