Tag: Accounting

Top 7 Tips to Get Clients to Pay on Time & some Bonuses

Posted on 08/07/2019

You’ve delivered your services or product(s) right on time, and your client was exhilarated with it, but there’s a twist. The invoice you’ve sent are several days late, and this isn’t the first time that this has happened. Your might not have considered using Outsourced Accounting Bookkeeping Services to get your clients to pay on time.

Irrespective of the business you are in, you will experience late-paying clients. As a matter of fact, almost 80% of businesses receive their payments well past the due dates. Approximately 75% of businesses have had clients who have not paid their invoices for at least 40 days.

Looking at the circumstances, customers get the benefit of the doubt. Most clients are amicable and are looking on paying you eventually. Their late payments hurt your income and ruffle-up your budgets. That’s not good for your business’ financial health. It’s wise to nip the problem in the bud and take action to preclude new clients to become late payers.

Where should you start? To help remind your customers to pay on time, we suggest using one of the following tactics:

1. Maintain Superb Client Relationships

Your client will want to pay you on time when you make them feel special and not a revenue machine. Always maintain a friendly relationship with your customers and let them know they’re special. There are many things to make them feel they’re not only a client, but a valued member of your team. Help solve a personal problem, feature them in your blogs, or provide a one-time service bonus.

People always want to feel special, and our brains fire up when we’re mentioned by our names. Clients are more than willing to go out of their way if you do the same for them first, and you’ve just learnt the Principle of Reciprocity.

As a business, you need to always remember that the clients may have hundreds or even thousands of employees. Make a list of key contacts and send them a personalized gift or a thank you note. A simple hand-written or printed note telling them they’re important will go a long way when the time arrives for them to pay your invoices.

2. Having Precise Payment Terms

Sometimes, clients assume wrong about your payment terms. They assume you function on a “Net 21,” “Net 30,” or even on a “Net 21” basis or on specific days, like the 1st and 15th of a month. All your terms and conditions should be worded-out clearly. There should not be any gray area.

Add relevant sections in your contracts that explain the due dates, payment modes, and other required terms in detail. While working on this, check if your customers require specifically formatted invoices or how you should submit your invoices to be in compliance with their system.

Learn how having Outsourced Accounting Bookkeeping Services helps you reduce time on submitting your invoices and doing follow-up with your clients.

3. Automating Your Invoicing Process

There are times when you are busy in your project and you simply forget to send the invoices to your clients. Sending invoices through mail takes long, risks getting lost, and adds to billing expenses. Automating the process using invoicing software and accounting software gives the clients the invoice quickly. It also saves on mail expenses, paper, and keeps your invoice at the top of client’s mind.

You should schedule email reminders for payments so you are not chasing late-paying clients. Outsourced Accounting Bookkeeping Services is an invaluable option for staying on top of your Accounts Payables and Accounts Receivables. Automated solutions have payment reminders and can be linked to online payment clearance providers. It is advisable to invest in a system that automatically sends the invoices once you complete your projects.

4. Implement a Recurring Payment System

If you are working long-term with your clients, you should seriously consider a Recurring Payment System. This allows you and the client to focus more on the project and not be bothered by billing schedules and invoice due dates. It’s easy to get this up and going when you provide the same services every month.

With varying payment dues and dates, you are more likely to run into difficulties. Your client shouldn’t mind payments going out automatically for expenses without reviewing them. If they want to know, sit down and set a basic amount for all recurring invoices. If you have additional costs, show it to the clients before you bill them.

Making sure your automated invoicing solution sends invoices and receives money from clients is always a plus. You should make sure that this automated solution allows for recurring payments, allowing you and your client to focus on work. You will save time in preparing and sending invoices and your client will save time paying them.

5. Client Rewards and Recognition

How many times have you sent a “Thank You” note or a gift to your client; not to pay invoices, but to let them know that they are appreciated? A few times over the years, never? Doing this is not bribing them to pay early; you are just making them feel appreciated. Writing a handwritten “Thank You,” “Thank You for your business,” or even a “You’re a great client,” will go a long way other than clearing your pending invoices or them being paid quickly

You are giving your clients a cause to pay attention and provide a discount for prompt or early payments. This small incentive encourages your clients to clear your dues, but penalizing them for late payments is also warranted. You have to put a percentage rate for missing deadlines, but you must put the emphasis on prompt payments. You can offer a discount of 2% or even 5% for early payments.

6. Direct Invoice Payment Links

Clients might be willing to pay you immediately, but they have to open another program, log-in, and then pay you. They might be called away from their system and the session would time out before they got back. The clients don’t like repeating these steps again and again. They’ll leave it for later and eventually forget or it will be delayed.

Investing in an invoicing system supporting integrated payments like payment processor buttons reduced the time for payment processing. Your customers are a click away from paying you for your job. This reduces any distractions that might stop them from the payment task in front of them. The easier the payment process, the quicker you get paid.

In an ideal world, invoices are paid as soon as they are presented. In the real world, you need a helping hand for keeping your cash flow flowing. Using Outsourced Accounting Bookkeeping Services helps you process invoices, present it to clients, follow-up, and receive payments will reduce your financial stress.

7. Ask for An Upfront Payment and then Smaller Payments

An excellent way for lowering risk and making clients pay on time is by splitting the payments into smaller portions. You should do this will all clients. If you have clients who are already paying you, then implement this from their next project. It should be your golden standard for invoicing. You should split payments in parts like 30/30/20/20, 25/25/25/25, 20/20/30/30, 35/25/20/20 or any combination that you are comfortable with.

An agreed upon pre-payment amount before starting work on the project, the next amount after finishing the first draft. This ensures that you have received an amount before you reach feedbacks and changes to the project, or the half-way point. Now, after you have successfully implemented all the feedback, changes, critiques and the client is satisfied, ask for the pending amount.

It is better to ask for an upfront deposit when working on large projects or huge orders from the client. You should offer moderate payment options instead of one big lump sum. This ensures that you have cash flowing till the completion of the project and clients would easily be able to make those payments.

Nevertheless, when working on large projects, it is best to ask for a deposit to cover expenses.

BONUS TIPS to get paid quickly

8. Delivering Services on Time

It is not enough to look to your customer for late payments when you have not delivered your services on time. You should introspect and see if you fulfilled your customers order on time. If you’re a business and you complete the project late you can’t send then invoice. You have to account for that when you prepare your invoice.

Make sure you have enough manpower to be able to complete the project on time. Your customers will be happy and pay you quicker when you send your invoices to them for clearing. The quicker you complete your projects the quicker you get paid. There is no point in being frustrated when you deliver late on your projects, but expect the client to pay your invoices on time.

9. Quick Invoicing

Send the invoice to your customer as soon as the work has been completed. This results in the work and payment being linked together. You will find that by linking these two together, you will receive your payments quicker.

When your project work has been completed, there is no reason to delay the invoicing part. Using Outsourced Accounting Bookkeeping Services help you to reduce the delay in billing your client and providing them with invoices at the earliest.

10. Use Outsourced Accounting Bookkeeping Services

There is no denying the fact that there is always the need for outsourcing services in every field. With a dedicated Outsourced Accounting Bookkeeping Services team you can concentrate on providing your client with the best service possible. The team would be an extension of your business and would ensure prompt billing and follow-up to clear pending dues and payments.

Relying on the outsourced team also ensures that you are not wavering from your task at hand and are fully immersed in the project. All billing and invoicing-related tasks would be handled by the outsourced team and you receive payments on time. You have to update the team of the client contracts, billing schedules, reminders to be set, and follow-up criteria’s once and it would be done as a routine job.

It would be wise to invest in an outsourced team to reduce costs on mailing, printing, paper, and manpower-hours invested to bill and invoice the client. All processes relative to financial services would be handled in the backdrop without you being worried about the cash flow.

11. Ensure you have a Collection Policy

In most cases you get paid either on time or late. There are cases when you would be paid very late, but are paid nonetheless. There are situations where even after frequent late fees and reminders your clients don’t honor their invoices.

In these types of cases, you can ask your attorney to send a letter or make use of debt collections agencies. Be careful though, you are not trying to damage your relationship with the client. It may be that the client just forgot or the intern/secretary was inattentive in process your invoice.

Conclusion

For these tips to work there needs to be open communication between you and your client. While you can’t guarantee that these will work, you should prevent late payments. These tips will work with most clients and give you peace of mind.

Irrespective of how you minimize the problem, you should make sure your clients know your terms and conditions, billing and invoicing details, and other agreements. Conveying clearly with no misinterpretations gives you the advantage when you follow-up with clients for late payments and late fees.

Whatever steps you take, always have a clear-cut collections policy. This helps you to resolve unfavorable situations if they occur at all. Many customers are cooperative and pay their bills on time or late.

Never, ever undervalue the ability of preserving a harmonious and professional relation with your customers. Regardless of the frustration, always keep your cool, and be respectful when reviewing and reminding about invoices that have been pending for long.

Topics: Accounting , Bookkeeping Services


Building a High Performance Bookkeeping Team

Posted on 12/09/2018

What great joy it is to celebrate our own achievements! But what greater joy when share our celebration with others! While individual goals are more straightforward to articulate towards, it takes tremendous effort to mould many minds towards achieving a common goal. All team efforts require voluminous amount of discipline and self sacrificing. In a world driven by “every man for himself”, team players are highly valued for their traits and attributes

Building a team is a continuous process that does not happen overnight. The values, commitments, responsibilities and deadlines involved must be shared by all the members of a team equally. Like a car in motion wherein the wheels work in unison towards a direction, so should a team drive towards its goal. Some of the practises that can be followed are discussed below:

Building a High Performance Bookkeeping Team

1. Conduct huddles and team building exercises to ensure collective responsibility:

As a leader, it is your responsibility to be on the watch out for signs of burnout among your team, especially during peak seasons. To avoid individual exhaustion, it would be highly critical to ensure that the team performs as a cohesive unit and the roles and responsibilities are uniformly distributed. Scheduling regular face-to-face sessions with your team will also help. Taking the team out for lunch or dinner as a token of appreciation can work wonders to boost their morale, and spirits. A team huddle at the beginning of the shift can help remind o targets and goals and can also be used as a platform to share best practices.

2. Summon Periodic Review for Revision of Goals and Targets:

It’s easy to get caught up in a whirlwind of day-today activities and lose sight of bigger picture. Hence, it would be a healthy practise to break down the goal into smaller and quickly achievable targets. This would instil a sense of accomplishment that would in turn drive towards the bigger picture. A clear integration of the smaller targets to goal would be vital to provide a roadmap.

Weekly assessment of targets and recalibration accordingly would help plot one’s position on the map and help forecast the following steps accordingly. Appreciation and encouragement when small targets met will help inspire more productivity.

3. Perform Assessment, Audit and Call for Training sessions:

Periodical assessment of employees and an audit on the quality of work will help flag down gray areas, if any. Some members may require an addition training session or a refresher session to amp things up a bit. Training sessions to keep the whole team updated with technologies and practises across the world will help in staying relevant. A report of the assessment should be able to help in the direction of moving towards the goal.

4. Device Democratic Decision Making in Special cases:

Generally it’s practical for the decision making to take place up the hierarchy and trickle down the pyramid. However, when the decision taken is to impact the whole team, it would be sensible to let the team have a say in it. This would not only employ delegation but also make the employees feel important. Being made part of the decision making process promotes a sense of significance. However, this exercise can only be carried out in special case scenarios. 

5. Advocate Knowledge Transfer and Learning:

In the fast paced world we live in today driven by innovation and technology it is very important to be constantly updated. Investing in just man power would eventually render the assets obsolete.  Encouraging learning and promoting training sessions to keep abreast with trending technologies will keep the resources from losing relevance. Knowledge transfer is also critical as it delivers a certain edge to the less experienced in handling certain scenarios.

Why Velan?

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services that otherwise generally slow you down.

Call us today! And be rest assured that your business needs will be taken care of with the utmost sensitivity and sensibility the work demands.

Phone: +1-860-215-4997
E-mail: info@velaninfo.com

Topics: Accounting


Top 5 Bookkeeping Tips for Small Businesses

Posted on 14/08/2018

Top 5 Bookkeeping Tips for Small Businesses

With the world having adopted a scientific outlook, there has been immeasurable progress in every area of learning. And with the paradigm shift of technology, the world has grown by leaps and bounds, and with it has grown the competition to make it big in the playground of life. And the rapid flow of progressive ideas has brought to the limelight many entrepreneurs who have changed the global scene with their bold outlook. It’s not enough to initiate anymore, what matters now is the consistency and innovation with which you keep your ideas is running. And for any start-up or small business to consistently grow, financial management is the crux to its pillar of growth. Some of the major constraints that constrict the growth of small businesses along the bookkeeping vertical are:

  1. Affordability of a full-time bookkeeper
  2. Loss of time and money in in-house accounting
  3. Increased overhead and operating cost
  4. Delay in tax filing & resulting penalties

Bookkeeping plays a pivotal role in the functioning of any business enterprise. On the whole, it encompasses various procedures and processes that are as complex as they are critical. So, it would be smart to always have someone competent in this area manage its affairs. Following are some tips that can help mollify the various convoluted intricacies involved in bookkeeping:

1. Maintain Separate Books for Personal and Business accounting:

Mixing both personal and business accounts is never a good idea. Each by itself is poised with varying degrees of challenges. Put them together and you can just forget about it.  Keeping separate accounts will also help you keep things organized, which in turn will help save both time and resources in the long run.

2. Plan and Prepare for Major Expenses:

Always plan ahead and hold a reasonable reserve of revenue for inventory, office supplies, repairs, and maintenance. It is wise to always have a few worse case scenarios worked out and be equipped with a comprehensive response plan at hand. By forecasting expenses and budgeting accordingly, you can worry less about the future.

3. Log Daily Records and Reconcile Bank Accounts Periodically:

As an old maxim goes, “A stitch in time saves nine”.  Keeping track of your bank records periodically will go a long way in saving time and stress during later stages. Going over your accounts on a daily basis and establishing a regular monthly reconciliation with your bank will give you a clearer perspective of where things stand.

4. Closely Monitor your Accounts Receivable:

Account Receivables is a metric that can both build and break businesses. Having a close eye on the inflow of revenue (A/R) is highly crucial for any business. Having clients owe you money by the end of a cycle is not the same as the money sitting in your account. So, monitoring account receivables and having in place a calendar like a system that can track dues, deadlines and schedule follow-ups will help to streamline the flow of Account receivables.

5. Go Cashless:

Paying in cash may seem pretty straightforward, but it has a number of drawbacks that can add more complexity to bookkeeping. Among other things, cash payments are more difficult to trace so it will be hard to keep track of company spending, and you run the risk of overstating your income. Additionally, without any records of purchases, monitoring write-offs will also be a challenge. Online banking, credit/ debit cards are preferable options.

The world is a global village now offers various dimensions of unimaginable help required to stay afloat. And while outsourcing is sometimes viewed at with negative connotations, it has gained pace with fast-growing companies of this world. One of the perks of global networking is the choice of seeking outsourced help, which has its many upsides. And with the availability of outsourcing of Bookkeeping firms, small companies should certainly consider it as an option to staysail in the rapid current of growth. They help keep track of the amount spent, where it was spent, and when it was spent. Benefits of outsourcing are manifold. Some of them are as follows:

  1. They help overcome financial challenges
  2. They help shift focus towards business growth
  3. They reduce the staff & setup fees
  4. They help in delivering on time, error-free records
  5. They help to stay on top of the books.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Phone: +1-860-215-4997

E-mail: info@velaninfo.com

 

Topics: Accounting


5 Remarkable Moves for CPA Firms to Step-up Revenue Post-tax Season

Posted on 03/08/2018

CPA accounting firms must be breathing a sigh of relief post-tax season, after a hectic lap of tax filing this year. Successful firms don’t stop with a January to April alliance with their clients, but continue to do business with them throughout the year.

Find out how CPA firms can gain revenue effectively post-tax season.

5 Remarkable Moves for CPA Firms to Step-up Revenue Post-tax Season

1. Extend consultations to existing clients

A little twist to an old saying goes, “Make new clients, but keep the old, one is silver, the other is gold!” Client retention is the key to build steady revenue. It is cost-effective to extend new services to existing customers rather than spend money on acquiring new customers.

Clients who approach you for tax filing consultation may have issues in financial accounting too. The IRS Oversight Board says, about 60 million taxpayers, constituting 37% of the total filers for income tax, contact the IRS for various reasons. Clients will come back to you when they receive a notice or email from the IRS. Usually, they are charged on an hourly basis for expert support whenever necessary.

2. Extend advisory services and asset management services

Individuals opting for services of tax filing may not necessarily return for other accounting and financial services. Encourage clients to communicate with you and connect with you whenever they have questions or issues at hand. Communication through emails, postcards and newsletters are popular ways of being in touch with your clients.

3. Make the customer experience a priority

Generally, customer retention and customer service are never the focus of accounting firms. When your satisfied customers have a pleasant experience in resolving their issues, they would spread the word around. Such referrals are bound to bring you more customers. Request for regular feedback from your clients to help enhance your customer service.

4. Extended other accounting services –payroll, bookkeeping and bank reconciliation

The clients of cpa bookkeeping services are offered additional services such as payroll, bank reconciliations, and bookkeeping. The clients must trust you enough to try other services as well.

When it comes to hiring experienced staff and new infrastructure, contact us for complete dedication and delivery on time of various bookkeeping services.

5.Extend professionalism

When you understand the inherent financial situation of your clients, you can develop a strong bond by being proactive. Build a niche for your firm by providing services to a target group. Clients like to approach, skilled accountants in their specific field of business. Stay on top of the game by updating your knowledge constantly on changes in regulations and policies announced by the Government.

Extending more bookkeeping services to more clients will invariably mean hiring more accountants for your firm. A better option is to outsource your work to specialists in this line of work. Look for accounting professionals who are imbibed with qualities to be current, consistent and compliant. Contact us today and take advantage of our expertise in bookkeeping services.

Topics: Accounting firms , CPA


Why is Monthly Cleanup of Books & accounts Important?

Posted on 02/05/2018

Have you ever wondered why your bookkeeping system is in shambles? We do realize how an organized, clean, well maintained books of accounts depict the health of the business. This scenario arises when a lukewarm attempt is made to DIY bookkeeping, lack of time, incompetent bookkeeper or just failing to get it done.

A sensible way is to start your bookkeeping in the correct way from the beginning. Maintaining the books and balance sheets regularly, or rather at the end of every month will generate squeaky clean books. Considering the fact that you haven’t been updating on a monthly schedule, you need to start all over. Installing QuickBooks or any other bookkeeping software of your choice will be the first step.

For your benefit, here is a run through of bookkeeping tasks to close the books every month. This monthly routine helps you maintain cleaner books, easier business decision making and get tax-ready for the end of the financial year.

Cleanup of Books & accounts Important

Accounts Receivable

Your monthly invoices for work done for clients have to be scrutinized and all the deposits and cash are posted to QuickBooks should be checked. Try to reconcile your accounts receivable report, making adjustments against General Ledger and Balance Sheet.

Accounts Payable

Make sure monthly recurring bills and payments such as, car insurance and loan payments are entered in the respective books of accounts. Outstanding vendor bills and statements must be in line with Accounts Payable accounts and the Balance Sheet. The final monthly checkup of accounts should match your vendors’ records.

Monthly Reconciliation statements

Bank reconciliation statements for your multiple bank accounts, credit card transactions for the month should be updated, printed and filed for future reference. Reconciling loan balances and credit against the monthly statement should also be filed as it would make bookkeeping at the end of the financial year easier to handle.

Prepaid Income and expenses

Check for appropriate journal entries posted for prepaid income and expense adjustments, this would make your bookkeeper’s job a lot less time consuming.

Write off Bad debts

Bad debts that are uncollected are to be written off. QuickBooks has the facility to write off bad debts using the Credit Memo.

Keep an eye on your fixed assets

Any changes in your Fixed assets including depreciation must be updated on a monthly basis.

Validate all checks and Invoice numbers

Check books and invoice statements are generated in numerical order. Watch out for any missing numbers on checks or missing transactions and bring it to records. Any void or cancelled checks are listed and kept on record.

Review Financial statements

Check all postings in the financial statements for errors, missing records and unusual balances. When you identify any untoward transactions, review them and make necessary adjustments. Printing and filing Financial statements and reports are required for perfect cleanup.

Close Books and Backup

The Closing Date feature in QuickBooks permits you to lock the previous months and is password protected as well. When all the adjustments for the month is completed, the bookkeeper closes the books for the month and a backup of the books are done.

Keep tabs on your Budget

Reassess your actual numbers against budgeted numbers. You will understand why there is a difference and how a workable budget can be reinforced and managed for the following month.

The above measures are not only helpful to clean up your books of accounts, but also gives you the confidence of running a healthy business. As we are drawing close to the end of the financial year, well maintained accounts are an advantage for preparation of taxes. One of our services in demand is the cleanup of books for small, medium and large businesses. So, if you are looking for a shipshape financial book of accounts on a monthly basis or at the year end; an added bonus  is your peace of mind. Do contact us for a consultation.

Topics: Accounting , Accounting firms , Accounts Payables , Accounts Receivables , Bookkeeping Services