What A/R Really Is
What we have found over the years is that business owners have a fairy tail image in their head about their accounts receivables.
Many people have the mentality that as soon as an agreement is signed or work has been done that they have made more money. The truth is until the money is in your account and available to do something good it means nothing, A/R does not pay bills cash does.
For example, if you have a monthly rolling A/R balance of $4,000 you’re borrowing $50,000/year.
Sure, you’re getting paid that $4,000, or at least I hope that you are, but the fact is that throughout the year you are giving out micro-loans to your clients to the tune of $50k.
Dwell on that for a moment.
Realizing that your clients are borrowing money interest free from the First National Bank of YOU, the question becomes what do you do.
1) I’m going to correct this problem.
2) I’m going to do nothing.
3) I’m going to try to correct the problem.
The first solution will solve your issues and get some cash in your pocket!
You need someone to come along side you and show you how to accomplish this, for less than the cost of 1 billable hour.
The second solution won’t cost you anymore than it did last year, so even though there is a loss, you’re accustomed to it and it’s not any greater than what you’ve already encountered.
The final solution is the one to watch out for.
Want to have someone show you the light? How about have someone come alongside your MSP, and show you the way to A/R success?
Email us here and we’ll set up a time to talk and help.