Commercial Collections Blog

Putting a smart cash management strategy in place is important for your business practice.  The key for a company is to manage its outstanding accounts receivable. If old balances aren’t written off, your A/R becomes inflated and gives a false view of what is really collectible.  Your current A/R should accurately represent what your company is owed.  Know what’s on your A/R and what the depreciation is.
For example, items that can or will be later returned are actually inflated receivables and don’t correctly reflect your expected cash.  Holding on to old accounts can also be costly.  Excessive follow-ups and multiple invoicing attempts may inevitably cost more than what the receivable was originally worth.

Put a process in place regarding write-offs.  Set a standard for what you are willing to turn over to collections before writing it off your A/R and what you can comfortably write-off without additional collection efforts.

We can help you determine what is really collectible.  For more information on our collection services call 877-740-7839.

Burt & Associates
Solid Experience. Strong Solutions. Since 1979
for Collection Agency Price Quotes

Technorati Tags ACCOUNTS RECEIVABLES, cash flow problems

The accounts receivable aging schedule is a useful tool for analyzing the makeup of your accounts receivable balance. Analyzing the schedule allows you to spot problems in accounts receivable early enough to protect your business from major cash-flow problems.

The A/R aging schedule can be used to identify the customers that are extending the time it takes for you to collect your accounts receivable. If the bulk of the overdue amount in receivables is attributable to one customer, then steps can be taken to see that this customer’s account is collected promptly. If overdue amounts stem from a number of customers, that could be a signal that your business needs to tighten its credit policy toward new and existing customers. For more information call us at 877-740-7839
Burt and Associates
1-877-740-7839
Solid Experience. Strong Solutions. Since 1979
Collection Agency Price Quotes

Technorati Tags ACCOUNTS RECEIVABLES, burtandassociates, business

Amid current economic weakness, it has never been more important to protect a company’s assets. One of those assets is trade receivables. Whether growing your firm internationally or just protecting your AR, there are a number of ways to make certain those receivables are handled efficiently. Irrevocable or even standby letters of credit certainly are a few ways to reduce the chances of not getting paid according to terms. Making certain your collection practices, and that means follow up policies, are carried out in a timely manner certainly will reduce your company’s DSO.

Accounts Receivable Collection Period, Days Sales Outstanding in Receivables (DSO)

Try our Days Receivables Outstanding DSO Calculation, and protect your Receivables

Technorati Tags ACCOUNTS RECEIVABLES, DSO

Options can be settled in 3 ways: you can offset the option, exercise it and take physical delivery or, in some cases, you can cash-settle the option. Offsetting an option involves reversing the original transaction prior to the exercise date. If you bought a call, you have to sell a call. If you sold a call, you have to buy a call. A physical delivery option, which typically applies to stocks, gives the owner the right to receive physical delivery (for a call) and to make physical delivery (for a put) of the underlying stock when the option is exercised. A cash-settled option, which typically applies to index options, gives the owner the right to receive a cash payment based on the difference between the value of the underlying index at the time the option is exercised and the fixed exercise price of the option. The power of options liens in their ramifications can enable you to adjust your position on situations on your favor, if you put your accounts receivables on the table and you fail to step up on the options, your accounts receivables will be lost. For more information on how options can affect your Accounts Receivable,  Commercial Collection firm will gladly help you.

Technorati Tags ACCOUNTS RECEIVABLES, commercial accounts

Discounts can be beneficial to both the seller and buyer under certain circumstances. One of the primary reasons for the seller to offer discounts for early payment are the relative financing costs of accounts receivable that are saved by the seller for early payment versus the cost of early settlement discounts. Another primary reason relates to the degree of the sellers need for early payments due to the company’s cash flow requirements. Offering cash discounts for early payment however, has its down sides, such as noting that debtors have a tendency to take the discounts whether they qualify for them or not. Collecting on these “unqualified” discount deductions can then become a headache and, if let go, eventually unnecessarily inflate receivables, which could cause borrowing rates to increase if overall deductions get out of hand. Other topic you would like to know is the accounts receivables aging schedule, use one of our tools Business Debt Recovery Chart

Technorati Tags ACCOUNTS RECEIVABLES, cash flow, commercial collection agencies

As a result of accounting rule FIN 48, companies are required to disclose the amounts they have to put into tax reserves along with any other potentially challengeable amounts related to past tax benefits. Companies must list these amounts as “unrecognizable tax benefits” on their 10-Q reports filed with the Security and Exchange Commission. Where once companies were required to reveal much less information about transactions that could face risk of an audit, this rule forces companies to more accurately reveal how they set aside such reserves. Visit our interactive Days Receivable Outstanding DSO Calculation.

Technorati Tags ACCOUNTS RECEIVABLES

Customer deductions, whether valid or invalid, can be a nightmare to those who deal with accounts receivables. Often such deductions as freight, pricing and even sales tax can sit on an AR ledger for long periods of time until they are either credited or paid back by the customer. There are dozens of different kinds of deductions that customers take. In fact, numerous surveys have shown that more than 80% of the time deductions are valid and should be credited promptly. Some companies have systems in place that allow for a quick resolution of these items, yet in other firms (and it often varies by industry not necessarily firm-to-firm) deductions can sit on a company’s books for as long as six months or more. The result? Inflated receivables that in the long run can cost your company money. If a company’s credit line is, even in part, tied to its AR, then the inflation of this current asset could adversely affect the amount a company can draw against–a thought to consider when evaluating your overall AR status, call Burt and Associates today we have solutions.

Technorati Tags ACCOUNTS RECEIVABLES

“Real gross domestic product — the output of goods and services produced by labor and property located in the United States – decreased at an annual rate of 6.1 percent in the first quarter of 2009,” according to a the Bureau of
Economic Analysis. A 6.3 percent drop was recorded in the final quarter of 2008.

“It was the third straight quarter of declines and capped the worst six months of economic activity since the late 1950′s,”.
If you have Accounts receivables, recover them with a Commercial Collection Agency, don’t let the economy crisis impact your business, act now.

Technorati Tags ACCOUNTS RECEIVABLES, Commercial Collection, Commercial Collection Agency

Customer Deductions and Inflated Receivables
Customer deductions, whether valid or invalid, can be a nightmare to those who deal with accounts receivables. Often such deductions as freight, pricing and even sales tax can sit on an AR ledger for long periods of time until they are either credited or paid back by the customer. There are dozens of different kinds of deductions that customers take. In fact, numerous surveys have shown that more than 80% of the time deductions are valid and should be credited promptly. Burt & Associates has collection agency software that allow for a quick resolution of these items, yet in other firms (and it often varies by industry not necessarily firm-to-firm) deductions can sit on a company’s books for as long as six months or more. The result? Inflated receivables are turned over for collection to collection agency  in the long run can cost your company money. If a company’s credit line is, even in part, tied to its AR, then the inflation of this current asset could adversely affect the amount that company can draw against–a thought to consider when evaluating your overall Accounts Receivables Management status.

Technorati Tags ACCOUNTS RECEIVABLES, collection agency, Commercial Collection, Commercial Collection Agency

Your business has many assets, such as physical items, maybe your building, equipment, items you stock, key employees, your customers and your credit functions.  Many business owners don’t look at their accounts receivables functions as an asset, but your accounts receivables are one of the most important assets your business has.  Assets are economic resources owned by a business.  Anything tangible or intangible that your business owns is an asset, assets are things of value that can be easily converted into cash and cash is considered an asset.

Technorati Tags ACCOUNTS RECEIVABLES