Characteristics of Effective Teams to Build Your Business Success

We don’t work in a bubble. Every day we are interacting with clients, vendors, co-workers, and other business contacts. One of the most important relationships we develop in a small business environment is the team of professionals working closely together to secure the success of the business. The strength of this team and how well they work together is vital to staying competitive, productive and profitable. In this article, we’ll discuss the important characteristics of effective teams to improve your business.

Commitment to a Common Goal

Teams are created to efficiently and effectively complete a goal. The goal must be defined. It can be increasing sales for your company, getting a large order shipped out, or planning the annual client appreciation event. It is important that the goal has a clear direction, and each member has a good understanding of what the desired outcome looks like. The goal of the team is greater than individual interests. This is the first step towards coming together as a unit and successfully achieving the goal.

Participation

In effective teams, each person of the team needs to have a clear role and must be considered essential to the team’s success. All members need to understand they are a part of the solution and must be motivated to put in their fair share of the work.

Open Communication and Collaboration

The more comfortable team members feel with other members, the more they will be able to communicate openly with each other. Building a team culture that allows for open, frequent, and face-to-face communication will encourage team members to collaborate and freely exchange ideas and information.

It is important to mention that good communication does not just mean sharing your ideas and thoughts in a clear way, but also closely listening to and respecting the ideas and thoughts of other team members. In effective teams, if something is not clear, members ask clarifying questions.

Opinions, Risks, and Change

Differing opinions and ideas help spark creativity. By encouraging diverse opinions, there is an opportunity to have more ideas to evaluate, thus working towards the best solution to achieving your goal. Brainstorming is a safe, tried and true tool for building on each other’s ideas, allowing the team to discard the less valuable ideas, and elaborate on the stronger ideas. This also encourages team members to take risks and suggest possible changes that are in the team’s best interest.

Defined Roles by a Strong Leader

Each team member needs a defined role within the team.  A strong leader is important to effectively motivate the team, give feedback, and, if applicable, select the team members and distribute their roles. A good leader will also be a role model for good, open communication. Members should be placed in roles that take full advantage of their strengths and abilities. For example, a detail-oriented person would be great for keeping the team on track, but a creative artist may not be the best choice for handling budgets and metrics.

Responsibility

While individuals are responsible for completing their assigned tasks in a timely and efficient way, teams should not blame individuals for mistakes. Both failures and successes are shared by the team as a whole. However, it is appreciated when individuals are recognized for special contributions made to the success of the team.

Trust, Mutual Respect

Team members must feel safe communicating with each other. Members cannot feel judged by other team members. There needs to be a culture of mutual respect of abilities, and trust that members are not talking behind each other’s backs. Team members also need to trust that individual parts of the team are handling their responsibilities and tasks. Trust and mutual respect can be built through team building exercises and experiences.

Put American Receivable on Your Team

In conclusion, effective teams will collaborate and work together as a strong, solid unit. By reviewing the characteristics outlined above, you can build a team that will take your small business to new levels. And if your accounting team needs help with accounts receivable or cash flow, consider adding American Receivable to your team.

American Receivable is ranked No. 1 nationally among small-business factoring companies. Since 1979, we have provided small businesses with the financial resources and accounts receivable management strategies to grow, increase inventory, make payroll on time, and effectively compete in the marketplace. With American Receivable on your team, get funding within as little as 24 hours in some cases. Call us for a FREE quote today at 1-800-297-6652, or complete this quick quote form.

By Jack Stieber –  President  – American Receivable

Understanding Business Accounts Receivable for Small Businesses

Business accounts receivable is an important accounting term to understand if you are going to have a successful and profitable business. We believe it’s so important that we made it a part of our company name—American Receivable. Simply put, business accounts receivable are the monies customers owe to a business for products and/or services provided. The key term is “owe”. Business accounts receivable are an asset to your company, but they don’t count as actual cash until the invoice is verifiably paid. Some companies fail because they have a lot of accounts receivable on record, but they don’t follow up well enough on actually getting invoices paid and money in the bank quickly.

Have a Strong, Reliable System for Business Accounts Receivable

Without cash flow and money in an account, a business can’t sustain itself. Uncollected payments tie up money that can be used for growth, accounts payable, new orders, etc. Therefore, it is essential that a business has a solid system in place for invoicing, monitoring and collecting on accounts receivable in a timely manner. You are not in the business of giving goods and services for free, so allocating time and resources towards administrating your accounts receivable is good business practice.

To Give Credit or Not to Give Credit?

In retail, transactions are paid for at the time of purchase. However, in many business to business transactions, there are often terms for payment. This is the same as giving your clients credit, as they are receiving goods and services before paying for them. You may require a credit application to check on the prospective client’s payment history before allowing a longer term for their invoices. For example, your company may require payment in only 10 days after the date of the invoice before considering the payment late. For some companies, 30-day terms are the standard, especially when the client has a clean payment history. Whatever you choose, it is important to follow up with clients delinquent on their payment. If a client is consistently late, it may be worth requiring a deposit or shortening the payment terms for future transactions.

Be Diligent with Business Accounts Receivable

There is really no excuse for not being diligent about your business accounts receivable. Thanks to popular computer accounting software, producing business account receivables reports, and keeping track of aging accounts is simple. You just need to make sure to schedule it and generate the needed reports so that you can contact the delinquent clients and remind them that payment is overdue. The longer you let nonpayment slide, the less likely you are to collect on it, and so early intervention can prevent later aggravation.

Still Not Getting Paid?

What do you do when a client doesn’t pay and your company needs the cash? First of all, continue to reach out to the client and try to collect on the delinquent account. Another option is to take legal action, but this can be expensive—sometimes more than the amount you are owed. You can also consider factoring. American Receivable, the go-to source for factoring in Texas and throughout the nation, can help improve your business accounts receivable and help you make your business a success!

Here are some final tips to manage your business accounts receivable:

• Communicate with your clients about their invoice and outstanding balances. This includes making sure you have updated, accurate contact information
• Maintain diligence by having a detailed and scheduled procedure in place for invoicing, monitoring, and collecting payments
• Follow up on sent invoices in a timely manner
• Develop a regular schedule of follow-ups and how the communication will be sent
• Keep accurate records and documentation

Consider Factoring

Does your business accounts receivable need a boost? Are you thinking about factoring for your company help you get the cash your business needs? With offices in Dallas and Austin, American Receivable is ranked No. 1 nationally among small-business factoring companies. Since 1979, we have provided small businesses with the financial resources and business accounts receivable management strategies they need to grow, increase inventory, make payroll on time, and effectively compete in the marketplace. We can provide funding within as little as 24 hours in some cases. Call us for a FREE quote today at 1-800-297-6652, or complete this quick quote form.

By Jack Stieber –  President  – American Receivable

Business Tax Deductions You Should Consider

The poet Robert Burns once said, “There is no such uncertainty as a sure thing.”

That sentiment rings true for small businesses throughout the U.S. as the dust of the 2016 presidential election settles and tax season approaches.

During the campaign, President Trump focused on growing the economy by leveling the playing field, reducing regulations, repealing the Affordable Care Act and lowering taxes for businesses.  While the rhetoric was music to the ears of many small business owners, others pointed to Trump’s lack of specifics as the reason for caution.

In a January 18^th USA Today article, writer Rhonda Abrams pointed out that Trump’s plan to reduce the corporate tax rate would likely only apply to “C” corporations.  And she points out that “eliminating loopholes” could translate to a loss of deductions that many small business owners routinely take – like carrying forward business losses, claiming the use of your car or truck for business use and incentives for investors to fund new ventures.

The truth is it will take months, if not years, and the cooperation of Congress for such sweeping changes to take place.

In the meantime, here are 5 business tax deductions you should consider.

Tax Deductions for Interest Paid on Business Loans

You may deduct interest on small business loans, but keep in mind that the deduction can only be taken if the funds are used for business purposes.  Although interest paid on loans from friends and relatives is deductible, the IRS tends to look at these with a greater scrutiny.  Attorney and author Stephen Fishman warns, “You need to carefully document these transactions. Treat the loan like any other business loan: Sign a promissory note, pay a reasonable rate of interest, and follow a repayment schedule. Keep your canceled loan payment checks to prove you really paid the interest.”

In addition to conventional bank loans, factoring fees are also generally considered a business expense and are therefore deductible.  You should discuss your particular situation with the factoring company and your tax professional to make sure your situation conforms with IRS requirements.

Deductions for Business Travel

You should deduct your business travel costs and save your airline miles for personal use.  In a recent Investopedia article, writer Marc Prosser points out that “Business owners often rack up points on their miles card and figure that they can reduce business travel costs by using their miles for business flights. However, if they also fly fairly frequently for personal trips, this is a mistake. Business travel costs are fully deductible as a business expense; personal travel costs are obviously not.”

Deductions for Maintenance and Repairs

Tax deductions are available for the cost of routine maintenance and repairs to the business property.  However, improvements that add to your property’s value must be capitalized and depreciated.  Tax Consultant William Perez uses the example of changing the oil in a car.  According to Perez, “Changing the oil keeps the car operating normally and efficiently, but it doesn’t substantially prolong the useful life of the car. Replacing the transmission or engine, however, would substantially prolong the useful life of the car, and so this would be more like a repair that needs to be capitalized.”

Tax Deductions for Wages Paid to Independent Contractors

If your business employs independent contractors to meet your labor needs, you may deduct that cost.  Just be sure to provide any contractor who receives $600 or more in wages with Form 1099-MISC.

You should also be sure that independent contractors you employ meet the requirements outlined by the IRS.  Claiming an employee as an independent contractor can have a number of costly legal consequences for your business, including:

• Reimbursement of wages you should’ve paid them under the Fair Labor Standards Act, including overtime and minimum wage
• Payment of back taxes and penalties for federal and state income taxes, Social Security, Medicare, and unemployment
• Payment of workers’ compensation benefits to any employee misclassified as an independent contractor
• Providing employee benefits, including health insurance, retirement, etc.

Tax Deductions for Employee Education and Tuition

Employee education assistance is deductible provided you set up a qualified educational assistance program that adheres to IRS regulations.  The IRS currently allows businesses to deduct up to $5,250 for tuition reimbursement for employees.

In a recent article published on www.thebalance.com, writer Jean Murray points out, “Independent contractors working for your business can be treated as employees for the purpose of this benefit. That means they may also exclude allowable education to benefit expense payments from income. Their income would be reported on Form 1099-MISC.”

Before claiming any of these deductions, you should refer to IRS publications and discuss them with your tax professional or employee benefits consultant.

Obviously, this article covered just a handful of the deductions small businesses can take.  Are there others that you think our readers would find helpful?  If so, please share them by posting a comment below.

By Jack Stieber –  President  – American Receivable

A Fresh Start:  Keeping Your Employees Healthy and More Productive

A tidy and sanitary office is crucial for quality work.  Distraction lowers productivity, even on a subconscious level.  Studies have also shown that business offices are a breeding ground for germs causing illness, which takes employees away from work, lowering productivity and work quality.

A clean desk has shown to increase productivity.  Stacks of papers and files and other items cause clutter, which also clutters your mind.  It is recommended that after a task is completed, it is filed in the proper place.  How many times have you thought, “where is that file, or paper”? It is estimated that workers spend over 4 hours a week looking for misplaced items and correcting mistakes. If someone else needs the file, it will be easily found if it is returned to the proper place.  Productivity goes down and anxiety goes up when you are not able to locate what you need to complete the next task.  Filing things and putting supplies and other items away will create a more open workspace which will result in less mistakes being made.  Mistakes lessen productivity requiring a task to be done over.  A clean work area, uncluttered the mind as well and also makes things easily accessible.

The bottom line is that a healthy and productive workplace is not just keeping things in their place and immediately replacing files and other important papers. it is important to keep things like your computer, keyboard and other equipment clean and free of clutter.  10 sticky notes on your computer is cluttered are likely to fall to the floor.  Having too many personal items on your desk is also detrimental.  Put one personal item and find a shelf for other items you feel you need in your office. Employers should also require cleaning of electronic equipment, not only for health reasons, but for the maintenance and longevity of the equipment.  A printer full of dust is going to break down.  A keyboard with grime and bacteria will also stop working and will grow bacteria causing illness.  You touch multiple files and papers, pens and other things in an office. Imagine the germs lurking from everyone that has touched these things. Keep hand sanitizer in the office as well.  Healthy and organized employees are always more productive.

A sanitary and clear workspace makes for a clear mind and healthy body that can focus on tasks at hand.  If you have to go through stacks of paper looking for that one thing you cannot find, you will become anxious and frustrated, likely ending in a mistake. And, if there is bacteria on your desk and computer and throughout the office, illness is eminent, which will impede productivity.

Take some time before the new year and get everyone to spend some time cleaning and organizing the office.  It will make for a fresh, productive start to the new year.

Spend some time at the end of the year discussing this with your employees and involve them in cleaning the office.  Cleaning companies do basics and will not make your office sanitary.   It will make for a fresh, more productive office and healthy employees who are at work and able to do their job.   Start the new year off right!

 Year-End Checklist for Small Business Owners

One challenge for small business owners is to assure a strong year-end.  A survey by Office Depot resulted in 32 percent of small and midsize businesses owners stating their main concern during the holidays and end of the year was cash flow. Specifically, to have the financial resources to insure profit and success. 

There are several steps you can take to make the end of the year a success and get the new year off to a good start.

A complete financial accounting of your business will show your current financial standing and allow comparison with previous years.  This would include a profit and loss statement, balance sheet and cash flow report.  The profit and loss statement will not only show where you are for the year, it its will also give you an idea of what to expect in the coming year. 

Analyzing your cash flow for the year will give you the best idea of where you money is being spent. Three important areas to consider are:

1.  Operating expenses – incoming revenue and outgoing expenses.

2.  Investments – this includes inventory and equipment, amount      purchased and sold.

3.  Financial Debt – loans and outgoing payments made on behalf of the business.

It is important to reconcile accounts receivable at year-end.  Print a list of outstanding invoices for work completed.  Collecting amounts due will help with cash flow and allow you to begin the new year with a clean slate.

Update your vendor list.  Confirm contact information is correct on all current vendors and determine if they are profitable for you.  Purge files that are no longer active and delete any incorrect information. In addition, back up all contacts and other important information.  Make sure your client’s information is secure. 

Inventory is especially critical.  Be sure you are keeping accurate records.   Investigate discrepancies and make sure you are not a victim of internal loss.

Payroll and benefits need to be re-evaluated.  Make sure taxable benefits are accounted for, such as health insurance and transportation benefits.  Consider salaries and time off and make sure they are appropriate.  Many employers forget to include benefits like health insurance or transportation benefits as part of the salary.   Make sure the salary and benefits are appropriate,  including paid time off. Update policies and be sure all employees are aware of new policies and changes in benefits.  Be sure your employees are aware of the fringe benefits and total salary.

Many business owners worry about keeping employees on track and completing reports and other necessary year-end tasks.  Meeting with employees and coming up with a strategy will help maintain momentum and get things done right and in a timely manner.

Evaluate employees and determine if they are necessary and are an asset.  Make plans to eliminate employees who are not benefitting the business.

Meet with your staff and share the positive things that have occurred during the year.  Discuss goals that have been met and those that have not.  Set new goals for the coming year and discuss any changes that need to be made.

All of these will make your year-end smooth sailing and you can enjoy the holidays knowing you are ready for the new year.

Improve Your Business Cash Flow

Did you know that even if your income statement shows that your business is making a profit, your business can still not succeed? Just because you are profitable on paper, you still might not have a positive business cash flow. And, without cash, your business simply runs out of money and has to shut down. Cash flow problems are one of the biggest reasons small businesses fail.

What is Business Cash Flow?

The definition of business cash flow is pretty simple. It’s the movement of cash flowing in and out of your business. Cash comes in to your business when clients or customers pay for your products and services. Cash goes out when your business pays for expenses such as inventory and rent. When cash flow in is greater than cash flow out, you have a positive cash flow. When more cash is going out of the business than is coming in, the cash flow is negative.

There are some times when a business can expect their cash flow to be negative. It’s important to plan for those times by keeping more cash in reserves. If you are just starting up, you may have many one-time expenses to get your business off the ground—such as equipment and advertising—before you get any paying customers. Also, if you are a seasonal business and experience fluctuations in orders based on the time of year, it is important to manage your business cash flow wisely.

How to Manage Business Cash Flow

Keeping track of your business cash flow will help you see where any issues may be. A cash flow statement will compare accounts payable to accounts receivable. It will also help answer questions such as:

• How much is your company owed by clients?
• How many invoices are still overdue?
• How long does it take to get paid by clients after paying suppliers?

If more items are payable than receivable, you may have a potential cash flow problem in your future. The sooner you fix a cash flow issue, the better off your business will be. If you avoid the issue, you risk getting further and further behind, resulting in the possible loss of your business.

How can you make changes to move business cash flow back into the positive? Here are some ideas:

• Short-term financing can help bridge a short-term business cash flow gap
• Long-term loans help spread large asset costs over time
• Invoice factoring
• Sell assets no longer helping with profits, such as older equipment, to liquidate cash
• Reduce business expenses
• Find strategies to increase sales
• Implement procedures for receivables to come in faster, such as twice monthly invoicing, shorter payment terms, deposits on large orders, and more
• Wait to pay bills as long as possible without consequences of late fees and spoiled relationships

Financial advisors often recommend keeping 3-6 months of expenses in cash reserves for emergencies and unforeseeable situations. This advice carries over to business accounts, as well. Having cash in your back pocket for a rainy day may save your business in times of struggle.

Small business owners must learn and maintain smart cash flow management in order to succeed and stay afloat. By applying some simple cash management strategies, you can keep your business thriving. Both your business outlook—and your business cash flow—will be positive.

Factoring: A Business Cash Flow Solution

If business cash flow problems are creating concerns for your small business, invoice factoring may be a solution.  Put your trust in the best and call American Receivable to learn how our flexible factoring solutions help businesses like yours.

American Receivable, with offices in Dallas and Austin, is ranked No. 1 nationally among small-business factoring companies. Since 1979, we have provided small businesses with the financial resources and accounts receivable management strategies they need to grow, increase inventory, make payroll on time, and effectively compete in the marketplace. Simply put, we are your source for factoring and accounts receivable management.

Our clients are our priority. At American Receivable, we pride ourselves on our exceptional customer service and dedicated and tenured account managers. We can provide funding within as little as 24 hours in some cases. The success of our clients is the success of American Receivable. Call us for a FREE quote today at 1-800-297-6652, or complete the quick quote form below.

Managing Productivity and Morale during the Holidays

It is easy to get off track during the holidays. People are focused on the festivities, shopping and meals of the season and can lose motivation at work.  It is important to keep your business on track at the end of the year as well.  Keeping employees motivated and morale up will help guarantee continued success.

There are many ways to keep morale up.  You don’t have to break the bank.  Simple gestures will do the trick.

1. Decorate the office.  Encourage participation from everyone.  If you have a diverse office, into them to share different cultural traditions during the holidays.
2. Have a catered lunch brought in once day.  Let your employees know in advance and encourage everyone to share lunch and            social time together.
3. Have special festive treats available one or twice a week.  Ask employees to share b bringing treats. This is a good time to share    cultural or family traditions.
4. Do an office or company wide Giving Tree. There are many options such as a coat drive      food drive or toy drive.   Another option is to adopt a family and provide for them during the holiday season.
5. Have drawings once a week for gift cards in small denominations for coffee shops and inexpensive restaurants or cafes.

Small gestures will make your employees feel appreciated and people who feel appreciated most often will work harder. All of the above suggestions will make for a great holiday season at the office. You know your employees, so come up with other small gestures of your own.  Set a plan that fits your specific office.  

What You Need to Know About an Income Statement

Let’s face it, many business owners who are busy with the daily routines of running the company, struggle with taking the time to fully understand accounting principles and terminology. Yet, there are important concepts to comprehend if we are going to run a profitable and successful small business. In this article, we share a layperson’s explanation of an income statement.

The financial statements of a business provide a representation of the company’s current performance to owners and investors. The most important financial statement for the majority of companies is likely to be the income statement, since it reveals the ability of a business to generate a profit. This financial report is not only used by management within a company, but also by outside creditors and investors to evaluate performance, profitability and assessment of risk for a creditor or investor.

Income statements do not just report the income your company makes, i.e. the cash coming in. Rather, an income statement reports the revenues earned by your company during a specific period of time (month, year, etc.). Also, it shows the expenses incurred by your company during the same time period. The income statement is valued because of its indication of profitability, timely reporting and classification of revenues and expenses. You can use this report to track revenues and expenses and determine the operating performance of your business over a period of time.

Understand the Parts of an Income Statement

Simply, an income sheet will add up all of the sales/revenues and subtract all of the expenses. Hopefully, the total will be a positive number, or profit. A negative remainder would be a loss. But what goes into the sales and revenues? What goes into the expenses?

Income is the money your company receives (or will receive) for selling your product or service for the given time period. It does not include assets.

Expenses are the costs incurred in order to sell the products and services. This can be separated into Costs of Goods Sold and Overhead Costs. Costs of Goods sold are variable expenses, such as commissions and shipping charges. Overhead costs are fixed and include items such as rent and salaries. These two types of expenses are often separate line items on an income sheet, allowing one to determine margins.

Components of an Income Statement

• Cost of Goods Sold
• Gross Profit
• Operating Expenses
• Operating Income
• Other Income/Expenses
• Profits

Accrual Basis

The most accurate income sheets are based on accrual basis. This means that income and expenses are recorded for months they actually occur, not just when money changes hand. For example, if you sell 50 widgets for $500 to Buyer 1 on October 15, but Buyer 1 doesn’t pay the invoice until November, the $500 revenue would show on your October income statement. Additionally, if your employee sold the widgets and earns a $50 commission, but doesn’t receive that pay until November 8, the expense (Cost of Goods) will still go in October’s statement, as well.

When accounting is done on an accrual basis, revenues earned are tied to the related expenses incurred in achieving those revenues. This is called the matching principle. This helps when determining profitability on the income sheet for the given time period. Getting this more accurate view helps small business owners make more specific decisions to improve profitability, by seeing the direct correlation between revenues and expenses.

Cash Basis

A cash basis income statement only contains revenues for which cash has been received from customers, and expenses for which cash purchases have been made. In other words, under the cash basis of accounting revenues are reported on the income statement in the period in which the payment is received from customers. Expenses are reported on the income statement when expenses are paid out.

Cash basis accounting is simpler than accrual because it recognizes only two kinds of transactions: cash inflows and outflows. The main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognized. The cash method is a more immediate recognition of revenue and expenses while the accrual method focuses on anticipated revenue and expenses.

Make Informed Financial Decisions for Your Business

Once you understand an income statement, you can get a true picture of your business’s overall health. Are your margins poor? Are your costs of goods sold too high in relation to the revenues they earn? Are your overhead costs also too high, or can you afford the nicer offices you’ve had your eye on? Can you afford more sales staff? Do you need to look for a supplier with lower costs? Looking at your company’s profits and losses accurately will help you make these decisions, and more.

American Receivable can help bridge gaps in your income statements. Our commitment to providing our clients with responsive customer service and the most competitive rates in the industry has made us the go-to source for factoring in Texas and throughout the nation. The success of our clients is the success of American Receivable.

With offices in Dallas and Austin, American Receivable is ranked No. 1 nationally among small-business factoring companies. Since 1979, we have provided small businesses with the financial resources and accounts receivable management strategies they need to grow, increase inventory, make payroll on time, and effectively compete in the marketplace. We can provide funding within as little as 24 hours in some cases. Call us for a FREE quote today at 1-800-297-6652, or complete the quick quote form below.

Thanksgiving Through the Years

The first Thanksgiving in Plymouth Colony which is now Massachusetts was in 1621.  The last Thursday in November was declared a national day of thanksgiving by Abraham Lincoln  200 years later.  In 1941 Congress made Thanksgiving an official national holiday. A day of “thanks” and “giving”.

Thanksgiving has traditionally been a day of family and friends getting together for a meal and fellowship.  A day to stop and reflect on all of the blessings we share.  In 1876, football was introduced as a tradition.  Yale and Princeton played the first American Football game on Thanksgiving day.  People were off from work and were able to go see football. It was not until 1934 that the first football game was broadcast.  The Detroit Lions played the Chicago Bears at University of Detroit Stadium and a new tradition, which later became a television broadcast.

Thanksgiving has changed over the years.  While many of the original traditions remain, new ones were born.  Black Friday became a big tradition for many families.  Getting up at early hours to go Christmas shopping for the best deals.  The idea came from retailers showing losses seeing a surge in sales on discounted merchandise on  Black Friday, often bringing their revenues back in the black.  Retailers started opening early on Black Friday and advertising big sales.  In the last decade, lit has become a Thanksgiving evening tradition with stores opening on Thanksgiving evening and staying open 24 hours. People have made their own traditions as well.  Many take vacations and skip the big meal and the shopping, although most still incorporate a game of football in the plans.

Thanksgiving is celebrated in many ways.  However you celebrate, remember to give “thanks” and “give” to those in need.

American Receivable is thankful for our customers and our relationships in the financial industry.  We wish everyone a safe and happy holiday.

In the words of the late Erma Bombeck:

“It takes 18 hours to prepare a Thanksgiving meal,

 It takes 12 minutes to eat it.  Half-times are 12 minutes.

 This is not a coincidence.” 

Business Partnerships: A Necessary Risk

Starting a business is an exciting venture.  Sole proprietorship allows you the freedom to Implement your own ideas, business procedures, and schedules as you wish.  The decisions you make will not impact anyone except you.

Working alone can be difficult when trying to jump-start a new business.  Most people need help in some areas, especially with the financial aspect. Some people may be better suited for a collaborative effort.  People have different strengths and weaknesses which is beneficial to the business. 

There is always a risk in a partnership.  You have heard the saying “nothing is forever”.  Many problems can arise when working with other people. Many people go into business with someone who initially seems to have the same mind-set and goals for the business. At some point during any partnership, egos, differences in opinion or direction may cause a rift in the partnership.  When the partnership dissolves, there are often claims of ownership and property that can cause disputes.  Partnership agreements can eliminate legal disputes that may arise from the split.  If one partner is going to keep the business, legal disputes can be expensive and result in the business being forced to close. Different skill sets, temperaments, and ideas can create diversity. However, the necessity for financial help, implementation of business procedures and creative ideas are worth the risk is you are protected.

Business partnerships are often necessary and have the potential to make the business a success.  However, a partnership agreement is unquestionably critical in making sure both parties are protected in the event the partnership dissolves.