Imagine going to your internet banking and finding you’re nearly out of money?
What do you do?
Where do you suddenly get more money?
Do you know what an aged trial balance of accounts receivable is?
It’s a listing of all the money that is owed to you from your customers.
Make yourself a promise that you’ll review this on a monthly basis as a minimum.
If you’re in trouble then weekly is much better and you can tick of all the money as you collect it from your customers.
There are many horror stories of small business owners continuing to supply products and services to customers who are not paying, have no intention of paying and are just going along for the ride.
If you are in construction then you will know about this but whenever the economy gets a little tight, you must pay additional attention to getting your money in.
Let’s face it, it’s one thing to make a profit but a completely different story to have money in your bank.
If you’re asking yourself the question “Where’s the money gone?” then a great place to start is your accounts receivable.
What are your experiences on collecting cash from customers?
Have you found this difficult?
Are there any tips you would like to share with others?
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