NexGen Bookkeeping

📚10 Tips to Managing Accounts Receivable 📚 1. Establish Clear Credit Policies: Define credit terms, limits, and interest on late payments. 2. Invoice Promptly and Accurately: Send detailed invoices immediately after delivery or service completion. 3. Offer Multiple Payment Options: Provide various payment methods like credit cards, EFT, and online payments. 4. Implement Automated Reminders: Use accounting software to set up automatic payment reminders. 5. Monitor Accounts Receivable Aging: Regularly review aging reports to track and follow up on overdue accounts. 6. Follow Up on Overdue Invoices: Establish a consistent process for reminders and personal follow-ups. 7. Offer Early Payment Incentives: Provide discounts for early payments to encourage timely payment. 8. Charge Late Fees: Implement and communicate late payment penalties to customers. 9. Review Customer Creditworthiness: Conduct credit checks and monitor changes in customers' credit ratings. 10. Utilize Accounting Software: Automate invoicing, reminders, and AR tracking with accounting software. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping

📚Tracking Time and Labor 📚 Lots of service-based businesses do not track time due to the burden of having employees track individual minutes. Understanding your labor and time costs are important depending on what service line your business is in – give us a call if you need advice on whether it makes sense to track your employees time. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping

📚Tracking Job Costs 📚 Cost Accounting lets you understand how much it costs to perform a service for a client. Service based businesses need to understand this metric if they are trying to home in on efficiency. Foundational bookkeeping will keep you on track. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping

📚Cash Flow Management – Seasonal Businesses 📚 If you have a seasonal business, such as a pool route or landscaping, cash management is essential. Ensuring you are setting aside the proper cash reserves to pay fixed expenses in slow seasons will save you a headache. Make sure you are flexible in planning your budget, so you are not surprised by unexpected payments. Regular cashflow projections will keep you ahead of the curve. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping

📚 When to Hire a Bookkeeper? 📚 Not every business needs a bookkeeper when first starting out, but when your business grows and you realize you need one, it is a steep mountain to climb. Getting ahead and having proper accounting principles in place will help your business grow naturally and without the headache of re-working your books. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping #CashManagement

📚 Cash Management – Importance of an Emergency Fund📚 A quick way to go out of business is to not have an emergency fund. Just like your personal finances, you want your business to have cash reserves. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping #CashManagement

📚 Cash or Accrual Accounting – What do Small Business Owners Prefer? 📚 Early on, most business owners use cash accounting over accrual for few reasons: 1. It is fast and easy to setup vs accrual accounting. 2. The associated bookkeeping is cheaper from both a software and service perspective. 3. Cash Flow Focused – it is easier for the owner to manage cash to expenses. 4. Taxes – it aligns closer with tax reporting which simplifies tax filing. As a business grows, it needs to grow. This is when you need capital to acquire more assets to further operations. This can come in the form of equity investment from investors or loans from banks. Both prefer accrual accounting. #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping #AccrualvsCash #CashManagement

📚 Cash or Accrual Accounting – What do Lenders Prefer? 📚 Deciding whether to use accrual or cash accounting is important if you are looking to get a business loan. Lenders typically prefer accrual over cash basis for few reasons: 1. A more accurate financial picture of the company. 2. The Matching Principle – allows the lender to evaluate efficiency of the business. 3. Comparability – makes it easier to compare vs other companies in the industry. 4. Compliance – this method complies with GAAP.   #NexGenBookkeeping #SmarkBooks #SmartBusiness #Bookkeeping #AccrualvsCash #CashManagement

📚 Why Do You Need Financial Statements? 📚 Accurate financials are the backbone of achieving business goals. They provide a clear view of your financial health, enabling informed decision-making and strategic planning. Reliable financial data helps track progress, identify opportunities, and mitigate risks. Ensure accuracy in your financials to drive growth and achieve your business objectives. #NexGenBookkeeping #SmarkBooks #SmartBusiness #FinancialAccuracy #BusinessGoals #StrategicPlanning #GrowthManagement

📚 EBITDA📚 Understanding EBITDA is crucial for your business's financial health. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) provides a clear picture of your company's operating performance by focusing on profitability from core operations. It's a valuable metric for comparing businesses, making strategic decisions, and attracting investors. Get to know EBITDA to unlock your business's true potential. #NexGenBookkeeping #SmartBooks #SmarkBusiness #EBITDA #BusinessFinance #FinancialHealth #Profitability #StrategicPlanning