Knowing your customer: Get a handle on collecting receivables
From time to time in the course of conducting business, I have come across clients who refuse to pay on time, even if they have the funds available. Let’s face it, especially now, with the so called cash crunch going on, people are holding onto their funds more tightly. They find unique ways to pay on their time line instead of yours. Not only does this disrupt your cash flow, but it also strains the relationship between you and your customer. There are ways in which you can get a handle on your cash flow while still maintaining a good relationship with the customer. For instance, stress to the client to keep the lines of communication open. We know that things can be forgotten, especially in the course of business, however, it shows integrity when a client calls because they anticipate not being able to make their scheduled payment. I have the practice of reinforcing to the client how much I value their business and that I’m willing to negotiate terms during extreme circumstances. This shows dedication and that I’m not only chasing the money. Even in the beginning, when I first sign on a client, I’ll ask them certain questions to get a feel for what ideas they have about handling money. Or, if the company is established I’ll check their credit rating at Dunn & Bradstreet. Just like when you open a credit account, the creditor has checks and balances in place to make sure that you are credit worthy, the same should exist when soliciting clients for your business. If at all possible, find a way to become familiar with their payment history. Ask to contact their former provider. Find out why they changed providers, and make sure that they don’t have any outstanding invoices with that former provider. It pays to do your homework and learn the payment behavior pattern, if at all possible, of your clients.
Partnering for your success
Jacqueline E. Williams
Financial Strategist
AN UPDATE FROM JACQUELINE WILLIAMS
I just wanted to make you aware of a few important events that are about to expire.
FEBRUARY SAVINGS ON BOOKKEEPING SERVICES
Recently, I’ve gotten many requests from business owners wanting to know if I had any available spaces for bookkeeping clients. Well, now I do. I have 2 openings for bookkeeping clients and because of the current economic times I’m even providing a discount of 20% to all new clients this month. But hurry, I only have 2 spots available and the discount is only good for this month.
Our services include:
1. Set up company file in QuickBooks
2. Mange and record customer payments
3. Mange and pay vendor invoices
4. Bank Account Reconciliation
5. Employee payroll processing
Reserve your space by contacting us today.
SAVE ON TAXES SERVICES
Don’t wait until it’s too late. Avoid costly penalties and interest. Now is the time to get your taxes filed. Do it quickly, all over the internet. No need to wait in line for hours. All filers signing up before Feb 28 will receive a 15% off discount. Schedule your appointment today.
Partnering for your success!
Jacqueline E. Williams
Financial Strategist
Do you want to be the tax client from hell?
Don’t let your frustrations get the best of you during the tax season. There is a better way to handle all the stress of filing your taxes. Listen to our Bookkeeping 4 Success Radio Show, and take note of strategies that will help get you through tax season.
Documenting is easy as 1-2-3
Many small businesses get caught in the whirlwind of falling behind in their paperwork because they have not discovered or utilized automation to make their bookkeeping process easier. Believe it or not, many feel that as long as they have the bookkeeping software in place (ie Quick Books), they have fully automated. This is not the case. Having software to track entries is one of the steps to full automation. Still, there is the process of organizing and categorizing your data before entering it into the system. This is where human error happens if you don’t have a basic knowledge of bookkeeping. For those who are still learning, there is an easier way. Automating various bookkeeping tasks will not only keep you up to date in your paperwork, it will also streamline your entire process and save you valuable time, which can be fully utilized in other revenue producing areas of your business.
There are various products on the market that aid in automating the documentation process and are able to be fully integrated with your current bookkeeping system. With these products, you will be able to scan, organize, and in some cases attach them to your bookkeeping transactions.
Smart Vault - this on-line document management system is available for a monthly subscription fee as low as $15. Being able to access this system anywhere anytime is a major plus for e-businesses. You will be able to scan, attach, share and store your documents all within Quick Books. There is no per user charge with this product, so you are only subject to the one low monthly fee. It is currently being offered with a 30 day no risk free trial.
PaperSave® - this document management system is a standalone module that must be installed on your system. Although it’s a little pricier, $195 for a single user, you will have the ability to integrate your records directly with MS Office products Excel, Word, Outlook, & PowerPoint. Having the same ability to scan, attach, share and store documents, the software holds it own by electronically storing over 200,000 documents.
Ultimate AppendIT - this software is unique in that it creates Windows folders on your PC in directories organized the same as QuickBooks lists. All documents, images, desktop shortcuts and web pages, which are placed in a folder, are easily linked to your QuickBooks entry. You maintain full control over what’s linked and how automated you want it to be. This is a standalone program that’s easy to install and only cost $24.95 to $49.95.
Managing your small business is very time consuming, so make sure you have the tools necessary to keep you ahead of the game. Automate wherever you can to give your company the competitive edge it needs in time management and document storage and retrieval.
Partnering for your success,
Jacqueline E. Williams
Financial Strategist
Now that you’ve issued 1099s and W2s, what’s next?
I’m sure by now, that your business has issued all of its 1099s and W2s by the February 2nd deadline, right? Well, the fun isn’t over. You also have to send copies of these forms along with a summary or transmittal sheet to the Social Security Administration and the IRS. To do this you’ll be using forms W-3 and 1096.
What is form W-3?
Commonly known as “Transmittal of wage and tax statements”, this form summarizes the total amounts reported on forms W2 issued to employees. It includes wages, federal and state taxes, Medicare, and other miscellaneous payments made to employees. You have the option of filing this form electronically or mailing it directly to the Social Security Administration. If you choose to mail the form, you need to include Copy A of the W2 statement for each employee that it was issued for. When filing electronically, you need only to send form W3. The deadline for filing this form is March 2, 2009
What is form 1096?
Commonly known as “Annual Summary and Transmittal of U.S. Information Returns”, this form summarizes various types of miscellaneous payments from forms 1098, 1099, W2-G, & 5498. You are required to file form W-3 electronically if you have more than 250 returns of any one type. If mailing the form, you need to include copies of all submitted 1099, 1098, W2-G & 5498. The deadline for filing this form is March 2, 2009 with forms 1098, 1099 & W2-G, or June 1, 2009 with form 5498.
In addition to federal submittal forms, each state has its own requirements for submission of employee and contractor statements. You must check with your local state taxing authority for specified instructions, or notify a bookkeeper for assistance.
Partnering for your success
Jacqueline E. Williams
Financial Strategist