AR (Account Receivables) is the lifeblood of any business of any size and nature. When overlooked, it could cause financial repercussions that cannot be easily undone. In fact, an ineffective and inefficient management of AR is one of the leading causes of bankruptcy for small businesses. A healthy flow of AR is an indicative on how well you are managing your small business finances.
Personally, on my first business venture more than 10 years ago, this was my Waterloo. I did not listen to what my accountant was telling me (more appropriately, warning me about). I extended or modified agreed payment terms whenever clients would request, and so eventually we were not able to balance our books, had to close shop, and asked our insurance to bail us out. It was a bitter lesson to learn in small business management, and something that I don't want to repeat.
Your AR should be protected and well managed at all times to keep your business afloat and competitive. There is now a better way of doing this –via a reliable Collection Agency.
Your collection efforts or AR management is one of the business processes that you should consider outsourcing. The benefits you get from hiring a collection agency outweigh all the cost it entails. This way, you increase your profitability, and you lessen your worries over your collections because a third party is doing it for you.
It makes business sense, right?
Personally, on my first business venture more than 10 years ago, this was my Waterloo. I did not listen to what my accountant was telling me (more appropriately, warning me about). I extended or modified agreed payment terms whenever clients would request, and so eventually we were not able to balance our books, had to close shop, and asked our insurance to bail us out. It was a bitter lesson to learn in small business management, and something that I don't want to repeat.
Your AR should be protected and well managed at all times to keep your business afloat and competitive. There is now a better way of doing this –via a reliable Collection Agency.
Your collection efforts or AR management is one of the business processes that you should consider outsourcing. The benefits you get from hiring a collection agency outweigh all the cost it entails. This way, you increase your profitability, and you lessen your worries over your collections because a third party is doing it for you.
It makes business sense, right?
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About the Author
Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.
