Are you paying yourself first?
Hello and Happy Tax Season!
I was in a meeting with a firm yesterday and a business consultant. The topic of A/R came up and the business consultant was talking about “benchmarking” receivables (what percentage it should be 0-30, 60-90 etc.) I thought to myself for a moment, “What an old way of thinking!”. Benchmarking receivables would be like benchmarking write-offs. No good!
What systems do you have in place to make sure you are getting paid before the returns/financials are filed, sent or picked up?
As a reminder, a service that is in demand has a lot higher value than a service delivered!
If we set proper expectations, price upfront and have good systems we can eradicate A/R entirely from our firms.
Now is the time!