Header Right

money

The Financial Flipside Podcast, Episode 17: Shut ‘Em Down

by

A weathered blue sign reading, "Sorry, We're Closed" hangs in a shop window. The sign is blue with cream-colored lettering edged in red

On December 22, 2018, the US government entered what was to become the longest shutdown in the country’s history, when the  President refused to sign off on a Congressional budget that didn’t include a requested $5 billion in funding for a border wall. The government temporarily reopened 35 days later, but not before damaging the economy and pushing many federal employees and people who rely on government funding social programs to the edge of their own fiscal cliffs.

 

How and why do shutdowns happen? What, if anything, did we learn from this experience? What can we do to prepare if the temporary funding lapses on February 15th without a budget in place? In this episode: “savings crises,” conference committees, grocery store negotiations, and only slightly less ire about borders than in our economics of immigration episode.

 

Speaking of which, if you’ve missed any of our previous episodes, you can find them on Apple Podcasts , Google Play, Stitcher., or on our website. Questions? Comments? You can email us at info@financialflipside.com or find us @financeflipside on Twitter, Facebook, or Instagram.

As always, relevant links are located under the cut.
[Read more…] about The Financial Flipside Podcast, Episode 17: Shut ‘Em Down

The Financial Flipside Podcast, Episode 16: Year-End Money Moves

by

a hand writes a list with check boxes in a graph-ruled notebook

As the year draws to a close, a lot of us carving out time between holiday parties and wrapping up projects to make a few New Year’s resolutions. After writing or typing out our lists, we roar into the new year with the best of intentions, armed with gym memberships, apps, and new gadgets. Yet, by the end of 2019, more than 90% of us will have abandoned our resolutio until December, when the whole cycle starts again. In this habit-forming episode, we talk about goal setting: why we succeed, why we fail, and some strategies for making your 2019 resolutions ones we’ll keep. Because we’re a money and finance podcast, and because financial resolutions are incredibly common (one poll taken at the beginning of the year found that saving money was tied with diet and exercise changes for the most popular resolution), we also discuss some things to do to get your finances ready for 2019.

Not subscribed yet? You can do so on Apple Podcasts, Google Play, and Stitcher. Our previous episodes can be found here. If you want to talk to us about habits,  resolutions, or your financial goals for 2019. we’re @financialflipside on Facebook, Twitter, and Instagram.

 

Mentioned on the show:

[Read more…] about The Financial Flipside Podcast, Episode 16: Year-End Money Moves

The Financial Flipside Podcast, Episode 14: Can’t Knock the (Side) Hustle

by

 

According to a recent Banrkate.com survey,  4 in 10 Americans have side hustles, or jobs that they work in addition to their primary source of income. Another survey of 1,000 Americans from CreditLoan.com found that 15% of side hustlers want to start a business of their own. If the legions of breathlessarticles aboutside hustling are any indication, we may be nearing a future in which everyone is living their entrepreneurial dreams and working 50 hour weeks.  Today’s episode tackles the hows and whys of side jobs, including making friends with fear, adjusting to irregular income, ethical side hustling, and turning your side hustle into a full-time business.

Discussed in this episode:

How AR Your Receivables?

by

When I ask business owners about their AR, they normally respond with either, “We invoice our customers.” or “We collect payments on a regular basis.”

I’m always glad to hear those responses. However, when I ask, “What is your accounts receivable turnover?” or “How many days does it take for you to collect?”, the business owner usually tells me it takes a month or two. Some may not know if it is within 30, 60 or 90 days. Once I begin reviewing their books and processes, I often find that their AR and cash management need a closer look.

Ever wonder how is it possible to be generating great sales per your income statement and have a monthly shortage at the same time? You may not be sure if your business is even achieving its break-even point (BEP). Are you meeting the minimum to cover overhead? What about sales expectancy? Are you generating a profit? One of the main reasons you have decided to be in business is to be successful in the service or products you provide. The goal should be to generate a profit so that your dreams and visions for your business come to fruition.

What if you were able to ascertain where you are currently and map out the steps you can take to improve in this area? What if you had a clear picture to help direct your business decisions? AR and cash management are areas that will need your focus and attention.  A lot of us start off and have current clients that meet our expected profit margin. Identifying your top customers, organizing invoices, and determining how to best collect on your sales will be essential to your growth.

With that in mind, here are 8 accounts receivable and cash management tips to help you get paid:

  1. Organization is Key.  Make sure that you have an invoicing system that is user-friendly to both you and the customer. It should be simple to access and issue payment upon receipt.
  2. Establish Great Communication with your Clients. During the initial meeting, share proposed contracts with details about the services being provided and your payment terms. Also, establish a business relationship with an open line of communication. Contact them on a monthly basis. Do recognize birthdays, anniversaries and add any personal touches you deem appropriate.
  3. Start Early. Establish a system that will generate reminders to your clients about upcoming payments. Having an invoicing system which will send out recurring monthly billing provides you with an organized way to record all sales and reminders to your clients.
  4. Remind, Don’t Wait. Once you find that a client is late with their payment, send out a reminder or give them a courtesy call. Make sure to be creative with your reminders and responses to nonpayment. Your client may have honestly forgotten. But, keep in mind: the longer you wait, the harder it will be to collect.
  5. Always Be Professional. As you are reviewing your bank account, sales, and expected close during the month, you may discover that some of your trusted clients haven’t yet issued payment.  This can, at times become personal and emotions may run high. Don’t allow this to drive your next step and decisions. Take a deep breath. These clients maybe be friends, network and business associates, or even members of your church. It’s important to keep it professional.
  6. Collections Call. Conversations concerning past due accounts can be tense. Establish protocol as to how the calls will handled and who will be responsible for making them. Be sure to review your “contract payment terms” beforehand and determine that you have exhausted all other efforts in collecting payment.
  7. Installment Plans.  Don’t underestimate the power of installment payments. Try offering them to your clients that may be facing financial hardship. If you would like to be of help and your goal is to make sure your accounts are paid in full, an option like this is better than a customer not paying you at all.
  8. Consider Outsourcing. Making a decision to outsource your accounts receivable and billing process might be helpful and allow you to focus more on managing your business.  Outsourcing helps to free up your time and resources. Taking a look at your weekly and monthly data will let you know immediately the state of your AR Sales and cash flow in a more timely manner. At Quality Financial Services, we offer this service to help small businesses operate more efficiently.

Keep in mind, generating sales and revenue is wonderful, but actually collecting is key to your company’s survival!  After all, “Your business is only as profitable as you are.”

 

 

 

 

 Nicole R. Cooper, MBA is the owner of Quality Financial Services, LLC, a company specializing in AR/cash management and collections. She is also an Invoice Sherpa Advisor.

 

Financial Flipside Podcast, Episode 10: The One About Money

by

image via Stocksnap.io


For relatively small  bits of paper and metal, money carries a lot of weight. It is (supposedly) both the root of all evil and the key to happiness In our particular capitalist society, we both venerate and distrust people who have managed to acquire a lot of money. It is at once a source of anxiety and a source of comfort.  In short: our relationship with money is complicated.

In today’s episode, we engage in literal #realmoneytalk. We discuss the history of money, its power in our lives, and how the almost mystical power we’ve ascribed to money can make it really hard to talk about. We also touch on the consequences of not talking about money because it’s scary or taboo or because we don’t know how. We can’t promise to demystify money in half an hour, but we do have some practical tips for building a less fear-based relationship with the contents of your wallet.

 

Talk to us: What is your relationship to money? What did you learn about money when you were younger? Are there any things you’ve had to unlearn in adulthood? Let us know in the comments!

Missed an episode? You can find us on Apple Podcasts and Google Play. Looking for our  RSS feed? You can find it here. As always, show notes/links are below the cut.
[Read more…] about Financial Flipside Podcast, Episode 10: The One About Money

Financial Flipside Podcast, Episode 9: Cash Flow

by

via StockSnap.io

What is cash flow? Put simply, it’s the money (cash and cash-equivalents, so CDs, shares of equity, government bonds, bank accounts)  coming into and going out of your business. It’s an easy enough concept to understand, but day-to-day cash flow management is the Achilles’ heel of many a small business. A study by US Bank found that 82% of all failed business are undone by poor cash management. Admittedly frightening statistics aside, there are a number of reasons for small businesses to care about cash flow. In the first half the episode, we discuss what cash flow awareness can do for your company, where to look for cash flow information, and how to understand what you’re seeing.

 

We generally talk about cash flow in a business context, but it’s equally important to keep on top of the movement of money in and out of your life and personal bank account. In the second half of the show, we chat about applying cash flow management principles to your personal finances, including budgeting, expense planning, and whether or not skipping that latte will keep you from financial ruin.

 

What are your biggest cash flow challenges? How do you manage cash flow in your life and business? Let us know in the comments,via twitter (@financeflipside), or email (info@financialflipside.com)!

 

Missed an episode? You can find us on Apple Podcasts and Google Play.

Check below the cut for related links

[Read more…] about Financial Flipside Podcast, Episode 9: Cash Flow