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Accounting Tips

Timely Collections

Are you having trouble getting paid timely by your customers? This is a problem many businesses are currently having but there is a way you can detect this problem early.

You can run a simple ratio called “Accounts Receivable Turnover” to get “Annual Credit Sales Divided by Average Accounts Receivable.” A high ratio indicates a tight credit policy. A low or declining ratio could indicate a collection problem.

Perform this test throughout the year and get a step up on your competition. Once you realize where you stand, take corrective action.

If you’re unsure how to get started implementing these three HUGE money-saving tips, call us today for a FREE consultation!

CALL NOW TO SCHEDULE AN APPOINTMENT!

631-921-6894

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