Are you losing money because you are not properly managing your payables and receivables?

  • Accounts Receivable – who owes you or invoices
  • Accounts Payable – who you owe or bills

There are several ways to manage and control both of these functions and find some hidden cash:

  • Have a formal and stated policy to manage and control these functions.  This is crucial for managing Receivables.
  • Take advantage of vendor discount terms or go after creating your own.
  • Make sure you are compliant with Federal Trade Commission (FTC) Fair Debt Collection Practices Act so that you don’t violate the debtor’s rights.
  • Set up systems for the prevention of fraud and theft.
  • Create a picture of where your money goes each month and be able to forecast your needs.

With over 30 years’ experience in managing the Payables and Receivables functions for small to large companies, we can get your systems running at top speed in no time.  Let us do a process overview of your functions and make sure that you are not losing money by ignoring these accounting processes.  We have a set fee so there is no fear of this becoming a lengthy and expensive review.

Things to consider:

Q) Do you age your receivables?  Do you know that you have the best chances of collecting an outstanding item within the first 60 days?

A) Aging receivables is very important in managing your collections.  Items that go beyond 60 days have a 25% less chance of being collected so it is crucial that you know how old your receivable items are.


Q) How to go after outstanding receivables?

A) There is tight regulation on how you may go about contacting a client for payment.  Too much pressure can be taken as harassment.  In today’s economy this is one area of your business that you do not want to let slide.  Make sure you know the regulations contained in the Federal Trade Commission (FTC) Fair Debt Collection Practices Act.


Q) What does  2% 10, Net 30 mean?

A) 2%, 10, Net 30 means that a vendor will offer you a 2% discount on that bill if you pay it within 10 days.  Doesn't seem like a lot until think about how little you are gaining by leaving it in the bank for that extra 20 days at 3% annual rate.   The interest would only be .16%, which is less than a tenth of the amount that would be earned by paying the vendor early.  On a $2,000 bill you would earn a discount of $40.00 vs $3.20 in interest at the bank for that month (if you are getting interest).

Save time. Utilize your resources. Make more money.

Call now for a consultation...   618.345.3651