Focused Bookkeeping offers services to expedite your invoicing as well as collecting receivables. These services are designed to ensure that your system are working smoothly and producing the cash flow that your business needs.
Where is your cash going?
Consider the following example:
- You bill once twice month and your invoices total roughly $50K each month
- You have good clients so you offer them credit, meaning they are allowed to pay you within 30 days
- Some clients pay on time, but others pay more slowly, with an average collection period of 45 days. The “collection period” is the number of days that it takes you, on average, to collect. Your bookkeeper can provide you with information that will reveal this type of key performance indicator
- Given total sales of $600K per year, your receivables will likely run about $80K at any given time. Perhaps this gets larger or smaller depending on seasonality of your business.
- Having this $80K tied up in receivables in equivalent to taking $80K out of your bank account and lending it to your customers.
- If you could streamline your invoicing process to bill every week, instead of every month, it may be possible to reduce your receivables to an average collection period of 35 days, which means only $58K in receivables. Streamlining has improved your cash flow by $22K.
- If you communicate better with your clients and they pay you on time, the amount of receivables would be even less, thereby generating even more cash flow for the rest of your business.
Focused Invoicing and Receivables Services
You decide how you would like to work with us:
- We can invoice your customers, or if you prefer,
- You can send out your own invoices.
With our outsourced billing service we make deposits, track payables, oversee collections, review and prepare reports, record daily sales and reconcile with POS systems.
- We gather information from your billing system
- We can prepare the invoice
- We review with you (if required)
- We send invoices and statements to clients
- We collect outstanding balances