Do Business Well

Accounts receivable aging. If you allow your customers to purchase from you on account you will find that not all of them pay you according to terms. In fact, you will likely end up having some customers who take quite a while to pay . . . if not forever.

To track the quality of your customers‘ payments and as an aid to your collection effort you will want to produce an aging report of your A/R. Generally, it will look like this:

By spreading your receivables in this way, you get a picture of your situation with outstanding accounts. ACME, Century, and Falcon are probably okay. B-One needs some attention, but Dave’s is serious. E-Plus is a bit past due, but it is a small amount. The situation with Dave’s has even caused your entire aging to be skewed. It is very serious indeed to have 37 percent of your outstanding balances in the ninety-day column. Continue Reading »

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Manufacturers, wholesalers, business-to-business service providers, and job shops can all benefit from the use of outside sales representatives. Some companies who deal with the public have the same opportunity, such as travel agents, mortgage lenders, and apartment owners.

What is an independent sales rep?

1. The term “independent representative” sounds exactly like what it is. This person works for himself. He or his company, generally referred to as a rep firm, will not be on your payroll, but will earn their money from three sources of services they may provide: Continue Reading »

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