Many of us are currently being faced

Many of us are currently being faced with tough economical circumstances. So how do you protect yourself as a business proprietor from a down turn in the economy and prevent yourself from being burdened with large Accounts Receivables?

A few years spine, I was doing some deep soul seeking. I was not happy with my business design. I was not making the money I think I should be. My Accounts Receivable Aging report was sometimes more than $30, 000. Here I was supplying onsite bookkeeping services and I was initially finding myself having to wait up to 45 days from the date belonging to the services to finally get paid. I was billing bi-weekly, but I was nonetheless having cash flow issues. My client's payment terms were really placing me in a cash flow crisis. The concept of spending lots of money on credit card fees definitely did not appeal to me, just what exactly was I to do? I was endeavoring to grow my company, but continually felt like I was chasing my clientele to get payments in the door. I had been tired of this.

I needed to make numerous big changes in order to fix my cash flow situation biweekly mortgage company and feel a lot more financially secure. I started by simply changing the terms of my own payment policy. A good friend of mine at that time was working for a company called Connections Payment Technologies. She opened my eyes to something called an Automatic Cleaning House. After doing a little homework, I realized that this was exactly the alternative I was looking for in order to minimize the accounts receivables, without having to go down the dreaded road of accepting charge cards. So what, you ask, is an Automatic Eradicating House? In plain English, based on Google, an Automatic Clearing House can be described as secure, private electronic payment transport systems that connects all US financial institutions.

Using and an Automatic Clearing House helped me to make the changes Required to stop having large Accounts Receivable balances. So how did they do this fully? Companies like

specializes in Accounts Receivable Truncation, Direct Deposit, Electronic Take a look at Conversion, Web Check and my personal favorite Recurring Billing. The Recurring Billing enabled me to have my flat fee monthly recurring projects taken out of this client's bank account automatically on a monthly basis rapid no invoicing and no waiting. I also changed how we handled our onsite bookkeeping clients by setting a new weekly minimum based on an estimated lots of hours worked that would be taken out of the particular client's bank account on a weekly or perhaps bi-weekly basis. On top of all of this, I also changed my billing to be regular in order to reflect adjustment bills through if we had gone over/under the minimum in the month for onsite clients set up as recurring. Even though I had fashioned changed my billing to be carried out on a monthly basis instead of biweekly, with this fresh automatic payment system in place, my receivables would be minimal.

This turned out to be precisely the solution that I had been looking for to fix all my collection and cash flow troubles. It made a dramatic influence on my cash flow situation and minimized my collections almost completely. It enabled me to be able to budget plus manage my cash flow issues on a more regular basis. So if you have ever found yourself within the position of feeling strapped for cash as long as you're waiting on your clients to finally get around to paying you for any services you have rendered, this may be exactly what you're looking for. In this tough economy especially, you may want to consider minimizing your accounts receivables by using an Automatic Clearing Residence to collect your fees for you.