Sunday, August 15, 2010

The Policy Side of Peachtree - Where Management and Accounting Coincide

Whether you're using Peachtree Accounting or Sage Accounting Software to check up on the myriad of factors that go into creating that magical profit figure at the end of the fiscal year, there is little that you can do from within your small business accounting software to either improve or worsen your company's results. Today we look at where management and accounting have to coincide, to create figures that are not only accurate but also pleasing!
Creating tracking systems for overdue accounts
You can’t risk having overdue accounts simply sit there, eventually becoming so aged that you look silly trying to collect on them. There are options within Peachtree that you can use to track aged debts quite easily; however you need to make a habit of printing these reports and more importantly, following up on the information that they provide.
Create a protocol for missed payments
You'll need to set down a policy regarding what should be done once you have the late payment list from Peachtree or ACT sales software in your hands. This usually entails:
  • Creating a payment contract for customers to sign before getting credit
  • Having a standard letter ready to mail as the intial step
  • Determining how many days it will be before extra action is taken
  • Deciding when it will be time for a phone call, and who will make it
  • Deciding what will be said in that phone call!
Offer discounts for fast payment
Collections costs a lot of money. Consider setting up your small business accounting software - Peachtree, Sage and ACT are all capable of this - to apply a discount to payments that are received within a specified time frame. No more than 5% is standard.
Offer multiple payment options
It is the simplest thing in the world to create new payment options within your accounting software, and almost as easy to set up the methods themselves with the help of an accountant. Ensure you have options for people that don't have the internet, may be hearing impaired so have trouble using phones, don't have credit cards or work during most normal bank hours.

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