Call for a FREE Quote Today: 1-(972)404-4726  –  Ranked #1 among factoring companies nationally

Blog

18 Jun
Cash Flow Solutions for Entrepreneurs

Business owners know that happiness is a positive cash flow!

Cash flow solutions for entrepreneurs

But, every now and then entrepreneurs are caught in a cash crunch.  The long-term solution to this is a detailed examination of every expense, an analysis of pricing and investigating bringing on outside capital.  The process takes time and won’t help meet payroll by Friday, or other operational costs.   Every business owner knows this drill – drop everything and start dialing for dollars!  In a frantic effort to get money into the bank, the owner starts calling customers to coax them to quickly pay their invoices.   Since this is an emergency, calls are made to the customers with the best relationships and those most likely to respond to a plea for a quick payment.  And while this may be one way to get cash in to meet the immediate expenses, the owner’s best customers are wondering about the strength of the business and the slowest paying customers may have gotten overlooked entirely.

Business owners finding themselves in a cash flow deficit...

Cash flow

...being looking for additional capital to meet these needs, overlooking the fact that they never established a collection policy for delinquent accounts. Following a few easy steps with each invoice issued, the owner will experience timely payments eliminate those desperate cash shortages just before payroll.

The first step is in the details

Even if you are providing service to a company down the block, verify where invoices are to be sent, who needs to be copied, and who approves your invoice for payment.  Get the contact information for accounts payable, e-mail and phone numbers.   An invoice sent to the wrong address is rarely forwarded. Follow-up on your invoices and get confirmation that the invoice is approved for payment.  Also, confirm the customer understands the payment terms on the purchase order,  and ask if you can offer a discount for early pay.

You know when your invoice is due...

...have someone from your company call several days before payment is due to verify that the invoice is in line for payment on that day. A little follow through will keep you up to date and help avoid problems that your customer may have with your invoice.  The customer will also know that you are on keeping up with your business and that you will be verifying invoices and staying on top of them to pay.  This takes time away from promoting your business but is necessary unless you find another solution.

When customers do not accept discounts for quick pay or are just slow, there are other options.  One of these is invoice factoring, a simple solution to shortages and immediate cash for your business.

Cash flow is one of the most crucial factors to success in your business...

Funding your business through invoice factoring works like this:

The business owner sells his completed invoices to the factoring company.  The factoring company verifies the invoices and funds the business owner with a percentage of the total, usually 85-95%,  When the factoring company receives payment on the purchased invoices, they return the balance or “reserve”, less the agreed upon fees. The factoring company will stay up on when the invoices are due and allow you more freedom to promote your business.

The business owner has consistent cash without waiting for his customers to pay, and by using his own assets, does not incur debt for his business as he or she would with a traditional bank loan.

A few simple steps will keep your business on track, your cash available for running your business and peace of mind for you, the business owner.

Call American Receivable today and let us show you how we can give you peace of mind...


Ready to find out more?

Contact us for a free quote!

30 Apr
Tips to Avoid Cash Flow Issues from Non-paying Customers

Top 5 Tips to Protect Yourself from Slow Paying Customers Affecting Cash Flow

What happens when one of your favorite customers stop paying their outstanding invoices on time? I may not be a good idea to take drastic action and potentially damage the relationship. However, you don’t want to jeopardize your company’s cash flow and negatively impact your bottom line. Here are five tips on how to protect your company from cash-strapped customers, and avoid letting their lack of cash flow affect your bottom line.

Top 5 Tips to Protect Yourself from Slow Paying Customers Affecting Cash Flow

1. Look for signs of trouble. Here are some examples:

  1. Payments consistently not coming in regularly and on time
  2. Payments made from a personal account or credit card.
  3. The client keeps asking for more and more extensions?
  4. A new client approaches you because they were “fired” by your competitor.

These are all warning signs that your customer may be having some major cash flow issues.

2. Understand Bankruptcy Laws in your State.

If your customer goes into bankruptcy, it’s important to understand your rights and chances of receiving back payments as a creditor. Unfortunately, any payments you received with 90 days of their filing for bankruptcy may be recalled. If you did business with your client within 20 days of filing, you may have better chances of getting paid. Know how a customer’s bankruptcy filing can affect your cash flow. Understand how collection actions may affect or hinder your case for receiving payments. It may be wise to contact an attorney if the customer is a significant part of your overall income.

3. Don’t accept new business from a client that is having financial problems.

It’s a tough choice to make, but refusing future business from a client that has stopped paying on time can be the wisest business decision. Before you take this more drastic step, do your due diligence and see if there are expected upturns in your client’s industry or, if feasible, have an honest conversation and see if there are indications of improvement and cash flow growth for their company in the near future.

4. Look for alternative ways to obtain money on your receivables.

Invoice Factoring can put money in your hands and improve your cash flow. An invoice factoring company, such as American Receivable, will purchase your unpaid invoices and give you a percentage of the value. When American Receivable collects payment on the invoice from your client, you receive the remaining amount due on the invoice, less the agreed upon fees.

To learn more about Invoice Factoring, visit American Receivable’s website.

5. Look for alternative ways to get paid by the customer.

  1. Require a deposit or prepayment for any future business. This will give your company cash flow up front, and protect you—at least partially—from any possible future non-payment. You can adjust the percentage of the down payment based on the perceived risk.
  2. Require payments at benchmark points during the contracted work. This will hedge against the need for a single, large invoice at the completion of the job. Partial payments can be set up monthly, or you can help your cash flow by arranging for payments at key points in the job cycle.
  3. Change the invoice terms and set up a financing plan. Instead of Net 15 or 30, can you set up a payment plan that allows the company to pay over a longer period of time with added interest payments?
  4. Exchange services for services. Does your customer have a business for which you can utilize their services in exchange for yours? If they do not have the cash flow to pay their invoice, you can set up a barter transaction.
  5. Similar to barter, you can negotiate the transfer of assets instead of cash payment on an invoice.
  6. Discuss their cash flow. Is it a seasonal business and their cash flow will improve in the coming months? Is your cash strapped customer coming into a large payment soon, or will one of their debts be paid off in the near future? In other words, will their business and cash flow improve soon enough that they can pay their outstanding balance to you in a reasonable time frame?
  7. As a last resort, you can look at collections options or talk to an attorney.
  8. As a business owner, protecting yourself from non-paying, cash-strapped customers can be difficult. Understand the challenges of running a business, and understand the cash flow problems that can occur. It’s important to look for the red flags of failing business, and find solutions to alleviate the effects they have on your business.

    The Solution in Invoice Factoring

    Find out how American Receivable can offset issues from cash flow problems caused by non-paying customers. American Receivable is the industry leader in invoice factoring, helping your company obtain the financial resources they need to grow, increase inventory, make payroll on time and effectively compete in the marketplace.

    Call for a FREE Quote Today: 1-800-297-6652 or complete an application for factoring online.

23 Apr
American Receivable Rated #1

American Receivable Corporation Has Been Rated #1 Among Factoring Companies…

…nationally, for the 5th consecutive year by Business.com and Business News Daily! – “Best Factoring Companies 2019.”

American Receivable Corporation Has Been Rated #1 Among Factoring Companies

American Receivable has been working with small business owners helping them manage continuous growth through cash flow solutions.

Jack Stieber, President of American Receivable says they attribute their success to their clients, their exceptional working partnerships within the financial industry, and an incredible tenured and dedicated management team providing exceptional customer service.

“We work with each client to find cash flow solutions specific to their business needs because not all businesses or industries are alike.” Jack Stieber

American Receivable helps start-ups and established growing companies meet their goals by providing working capital essential to business operations. A business sometimes overlooks their greatest asset for working capital: revenue. American Receivable provides a way for small business owners to fund their business and keep cash flow positive without incurring debt through invoice factoring.

That’s not all…

Taking advantage of invoice factoring is simple and easy – the process is made up of only 5 steps.

American Receivable's simple and easy five step process for invoice factoring
  1. You – the business owner will supply your customers with a product or service and then you invoice your customer directly.
  2. You send a copy of the open invoices to the factoring company for purchase.
  3. Upon verification of the invoices, the factoring company funds a percentage, usually 85-95% directly to you. Funding is within 24 hours in most cases.
  4. Your customers send payments for the invoices directly to the factoring company on your behalf.
  5. Once invoices are paid, the balance of the invoiced amount, less previously agreed upon fees, will be sent to you.

What you need to know:

Here are some things to consider when looking for a reputable invoice factoring company:

  1. Length of time the company has been in business.
  2. Are long-term contracts required or can I factor short-term?
  3. Are there up-front fees?
  4. What other services are offered if I factor with you?
  5. Are there extra fees for these other services?
  6. Do I have control over which invoices I sell to you?
  7. What is your fee structure?
  8. If you are a new business ask if they fund start-ups?
  9. Are you familiar with my industry?
  10. What is the application process and what is required?
  11. How long will it take to get approved?
  12. If my application is approved, how soon can I sell my invoices and be funded?

The best part…

…the glorious perks of doing business with a #1, nationally rated factoring company for the 5th consecutive year!

American Receivable has been rated number one by business.com

Factoring invoices close the funding gap caused by slow-paying customers because invoice factoring yields instant working capital!

Invoice factoring is a great alternative for a business owner who might not otherwise be able to acquire capital from traditional sources due to weak personal credit, lack of collateral, or length of time in business. Invoices for delivered products or completed work can be one of the greatest assets for a business. Invoices represent revenue for the company.  Invoice factoring is an option to fund your business through the revenues of the business, therefore, not incurring additional debt for the business.  Receiving the major percentage of the invoices up front, allows the business owner to operate with a positive and consistent cash flow, which is crucial for any business to operate smoothly and manage growth. American Receivable monitors the receivables and collections they purchase from a business. Assisting with collecting past due funds gives the business owner the ability to focus on managing and promoting the business.

Many business owners are unaware of the value of their unpaid invoices. Slow-paying customers can hold a business back.  Factoring those valuable invoices is the answer to keeping cash flowing and not adding more debt for the company.

About American Receivable: Since 1979, American Receivable has provided small businesses with the financial resources they need to grow, increase inventory, make payroll on time and effectively compete in the marketplace. Operated and managed by the original Managing Partners, American Receivable earned the respect of the financial industry for their personal attention to their clients. They offer exceptional client services and have a very knowledgeable and tenured management team. Don’t wait, get started today – click here to send us an email! 

09 Apr
Do You Have the Traits of Successful Small Business Owners?

Top 20 Traits of Successful Small Business Owners

Do you have what it takes to start a successful small business? Financing is a vital part of starting a small business, however,  there are many other factors to consider. Here are some of the most common traits of entrepreneurs who have been successful as small business owners.

  1. Driven: A suBusiness Factoringccessful small business owner has the tenacity and motivation to go into business and give 100 percent to build and grow the business. They are  driven to find the to find funding for the business by finding investors, loans and looking all options, including  non-traditional small business financing.

 

  1. Goal oriented: A successful small business owner keeps his eyes on the end goal. They have a vision for the company and the future. This refers not only to growing the business, but also continuing to find financing when more money is needed for the growth of their business. The small business owner is open to non-traditional small business financing such as factoring, as another option to reaching important long and short-term goals.

 

  1. Confident: Successful small business owners are self-assured, earn respect and trust, and take confident command of a situation.

 

  1. Passionate: Successful small business owners are passionate about their business. Striving for success keeps a small business owner motivated, present and engaged in their business.

 

  1. Budget minded: A small business owner is dedicated to keeping costs down and spending money wisely and conservatively. A successful business owner investigates options for loans, business credit cards, and other types of financing such as invoice factoring and other non-traditional small business financing.

 

  1. Self-Reliant and Decisive: Successful small business owners are able think and act independently of others. They are confident in making large and small decisions for the business.

 

  1. Humble: A successful small business owner will always remember the people who helped them along the way. They are open to constructive criticism and ideas from others. They are appreciative of help from others, be it operational advice, financing, or a combination of the two, such as obtaining non-traditional small business financing

 

  1. Resilient: Successful small business owners are able to overcome set-backs. They identify the problem and do what is necessary to find a solution.

 

  1. Focused: Successful small business owners able to focus on the task at hand. They have the focus and discipline to get the job done.

 

  1. Open-Minded: Successful small business owners are open to new ideas. They will look at all options for the right solution. They are open-minded about different types of financing. They will find the best option in traditional loans and credit, or seek out non-traditional small business financing like invoice factoring.

 

  1. Proactive: Successful small business owners are always looking for new opportunities to grow and improve their business. Proactive small business owners solve problems before they even happen, such as improving cash flow and profitability using non-traditional small business financing.

 

  1. Collaborative: Successful small business owners work with others, effectively delegate, and build strong relationships that enhance their business and success.

 

  1. Technically Aware: Successful small business owners find the right technology solutions for their specific business. They know that the right software is crucial for their business to run smoothly and best serve their clients.

 

  1. Energetic: Successful small business owners have the energy to manage long hours and take on a lot of responsibility. They know that a business is a full-time, long-term commitment.

 

  1. Risk-Takers: One trait all successful small business owners have in common is that they are not afraid to take a risk.

 

  1. Accountable: A Successful small business owner takes responsibility for both the accomplishments and failures.

 

  1. Trustworthy: A successful small business owner builds trust and trustworthy relationships. When signing contracts or obtaining a loan or non-traditional small business financing, it is important that others be able to trust you.

 

  1. Forward Thinking: Successful small business owners take creative ideas and make them a reality.

 

  1. Flexible: Successful small business owners are immune to setbacks and will regroup and find solutions for meeting their goals. For example, if traditional loans are not a current option, they will be flexible and look into non-traditional small business financing

 

  1. Hard Working: A successful small business owner works until the job is done, and then works some more. They invest time, energy and money into their business, and do everything necessary to be successful and profitable. When they need better cash flow, they will search for financing, and seek out non-traditional small business financing, such as invoice factoring when traditional financing is not the best option,

 

If you identify with a lot of these character traits, chances are you have what it takes to be a successful small business owner. Never underestimate the power of determination, hard work, and getting some non-traditional small business financing help when you need it.

American Receivable has been helping small business owners with non-traditional small business financing for 40 years. Through invoicing factoring, American Receivable is able to assist small business owners by improving cash flow, thus providing the financial resources needed to grow, increase inventory, make payroll on time and effectively compete in the marketplace. Call American Receivable today at 1-800-297-6652, complete an application for factoring online, or visit our click here to learn more about how the best invoice factoring company can help your small business.

13 Mar
American Receivable is celebrating 40 years

We are proud to be rated #1 among factoring companies nationally by multiple rating agencies.

Invoice Factoring Companies

How Does Factoring WorkHow Does Factoring Work

We are proud to be rated #1 among factoring companies nationally by multiple rating agencies.

DALLAS, TX, UNITED STATES, March 13, 2019 /EINPresswire.com/ — American Receivable is celebrating 40 years in the factoringindustry. We are proud to be rated #1 among factoring companies nationally by multiple rating agencies. Since 1979, American Receivable has been working with a diverse group of small business owners helping them manage continuous growth through cash flow solutions. We attribute our continued success to our clients and our exceptional working partnerships within the financial industry. Owned and managed by the original managing partners, American Receivable offers exceptional customer service through a tenured and dedicated accounts management team. We work individually with each client to find the best cash flow solutions for their specific industry and business needs.

American Receivable
American Receivable
+1 800-297-6652
email us here

Invoice Factoring

 

07 Mar
Tax Changes for Business Owners

Tax Changes for Business Owners

The dreaded part of every new year has arrived, and it is called Tax Season! It is not uncommon for business owners, even those with the best record keeping in place, to be recipient of some unexpected surprises when it comes time to send in their taxes.

Tax Reform Legislation was passed in December of 2017. The IRS has published some of the changes that may affect self-employed individuals as well as the bottom line for many small business owners. It is important to be aware of these changes when filing your 2018 business tax returns.

Qualified Business Income Deduction

Owner’s of sole proprietorships, partnerships, trusts and S corporations may deduct 20% of their qualified business income (Section 199A qualified business deduction) for the first time on their 2018 returns.

The deduction applies to qualified:

  • Business Income
  • Real estate investment trust dividends
  • Publicly traded partnership income

For more information on this deduction see REG-107892-18 at www.irs.gov.

Temporary 100% Expensing for Certain Business Assets

Business assets with a recovery period of 20 years or less generally qualify. Some real property such as office equipment, machinery, furniture and appliances may also apply.

Fringe Benefits

Fringe benefits cover a broad spectrum. Some of the benefits affected are:

  • Meals and Entertainment. The deduction for entertainment or recreational expenses has been eliminated. Fifty percent of the cost of business meals may be allowed if the business owner or an employee is in attendance and consulting for current or potential clients, or similar business contacts. Other qualifying criteria may be

 

  • Deductions for transportation fringe benefits has been disallowed, as well as benefits associated with commuting. The exception is made when these benefits are in place as a necessity for safety.

 

  • Bicycle Commuting. Qualified bicycle commuting may be deducted as a business expense for 2018-2025. Employers are now required to include these reimbursements in employee

·         Moving Expenses. Moving expenses reimbursed by an employer to an employee are now taxable. Moving expenses for years prior to 2018 are exempt. Payments made by employers to a moving companies in 2018 for a prior year, are also exempt.

 

  • Employee Awards/gifts. Employee awards considered tangible personal property may be excluded from wages. Some of these may be deducted by the employer, subject to New definition of tangible personal property is not inclusive of cash, gift cards or cash equivalents, event tickets, stocks, meals and other like items.

 

For a complete explanation, specifics and FAQ’s go to www.irs.gov.

Any aspect of the Tax Reform may affect your business. Many business owners experience a cash deficit when they have to put available funds toward taxes. American Receivable is here to help! Business owners can sell their outstanding invoices to American Receivable for immediate funding, eliminating a slow- down in business due to lack of cash. Cash is vital for any business to flourish as expenses such as payroll, rent, and other operational costs have to be met. The ability to obtain cash for invoices allows the business owner to put funds where they feel they are most needed to keep their business on track and growing.

Call American Receivable today and let us help you survive tax season!

21 Feb
Improve Your Business Billing Process

10 Tips to Improve Your Business Billing Process

One factor that contributes to small business success is funds coming in regularly, receiving client payments in a timely manner, and getting paid in full. So it is important to have a business billing process that gets invoices out on time, and ideally, paid on time. Here are some tips to improve your cash flow by making your business billing process seamless.

1. Set Terms Up Front

Your terms should be clearly stated to your client from proposal to payment.

• Do you bill hourly or by the project?
• How are any time overages or unexpected costs billed?
• Do you require a deposit? For example, one firm we have worked with requires a 50% deposit on projects more than $2,000, or for new clients until they have a proven payment record.
• Do you invoice multiple times during a project, especially if it is long or has multiple stages? Or do you only invoice once at completion?
• What timeframe does the client have to pay?
• What forms of payment do you accept?
• What are the penalties for late payment?
• How will the client be apprehended for late or non-payments?

2. Invoice on a Schedule

Decide on a billing schedule and stick to it. Will you bill at the end of each completed project, weekly, or at the beginning of the month? Figure out what billing business process schedule will allow you to be consistent so you can get paid.

3. Have a Business Billing Process System

Like having a schedule, having a clear system with outlined procedures is essential to a business billing process. Whether you use a spreadsheet to keep track of invoices, or a cloud software program, each invoice should be easily found and tracked. Tracked information should include invoice numbers, date sent, payments and dates paid, amounts still due, and any other pertinent information.

4. Consider Cloud Software

Even if your company has a more manual system that works for you, it may be worth considering a cloud billing software system. Integrated with your project management and/or time tracking software, creating invoices is only a few clicks away. Billing reminders and statements are easy to access—and send to clients—too. It will simplify your business billing process. The cloud system may even help offer your clients a convenient way to pay, ensuring you get payments in faster

5. Invoice with Supporting Data

• Make sure invoices received by clients meet these recommended elements:
• Have clear and easy-to-read details regarding the invoice and project including due dates, tracking number, itemized charges, deposits paid and total amount due
• Give a contact for your company if the client has any concerns or questions about the invoice
• Make it clear and easy for the client to know how to pay their bill: with an online paying tool, an address for mailing a check, credit card authorization form, or include an ACH application
• Any addresses and client contact information must be accurate in order to reach the person responsible for paying the bill
• Minimize errors and check for accuracy
• Invoices represent your company: Research shows that invoices with a company logo are paid sooner than those without

6. Keep Detailed Records

Keep accurate records for the project, invoices sent, and any follow-ups requesting payment in case there are any questions about the invoice, or a client contests the charges. For example, if your service is one that is paid by the hour, keep detailed tracking of the hours worked, what work was completed in that time, which staff worked on the project and more.

7. Follow Up Regularly

Part of an effective business billing process is having a system for following up on overdue invoices. Will you contact late paying clients weekly, semi-monthly or monthly? Will you send friendly reminder statements in the mail, email follow-ups, make phone calls, or a combination of these actions? Sometimes late payment is an oversight and the client will appreciate the reminder as flagging an accounting error or lost check payment.

8. Make Billing a Priority

Having an efficient business billing process is essential to the success of a small business. Without getting paid for the work you do, you can’t maintain cash flow, and, therefore, keep your doors open. Make the time in your schedule to keep your business billing process up to date.

9. Value Your Worth

You put a lot of effort into the work you do for your clients. Value your time and your right to get paid for a job well done.

10. Make American Receivable Part of Your Process

If you still have concerns about getting paid on your invoices and cash flow shortages after following these business billing process tips, American Receivable may be able to help. 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 this quick quote form.

By Jack Stieber –  President  – American Receivable

14 Feb
Effective Teams Contribute to Small Business Success

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

11 Dec
Year End Check List for Small Business

 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.

13 Nov
Thanksgiving Through the Years

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.” 

Sidebar:
#adroll pixel