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Red Flags for Potential Collection Problems – Receivable Savvy
Dean Kaplan (@TheKaplanGroup)—Every business owner has experienced the pain of customers who don’t pay. Usually these customers give off one or more warning signs of trouble, writes Dean Kaplan on Receivables Savvy. It’s important to recognize them and take action immediately, since research shows the chance of collecting decreases by about 1% per week for every week past the due date. If an invoice is 90 days past due, the chance of collecting has already gone down by over 30 percent, to only 69.6 percent. There’s only about a 50/50 chance you’ll collect on an invoice that’s six months past due. Clearly, fast action can prevent many write-offs.
Adele Parody Raises Late Payment Awareness – PYMNTS.com
(@PYMTS)—Speaking of late payments, you should not give up (see above). You should just keep chasing payments. That’s the message of a new parody video of Adele’s hit song, “Chasing Pavement.” The video was created by Xero, an accounting software firm, to bring awareness to the problem of late payments. All kidding aside, an accompanying study by Xero found that more than one third of respondents said late payments are eating away at corporate productivity, leading not only to a loss of money but also to a backlog of paperwork.
Kerry Maruna (@CFO)—CFOs are not feeling great about cash management, according to an SAP-sponsored survey of 371 finance leaders. Speed and accuracy are top areas of concern. Eight out of ten respondents are looking for their treasury function to prepare cash reports and liquidity forecasts much more quickly, and about one-third of respondents are looking for greater accuracy. The ultimate goal is for treasury to deliver high-quality information in near real-time, so they can make a more strategic contribution.
SMEs Still Stick to Google for Accounting Advice – PYMNTS.com
(@PYMTS)—Who do small to mid-sized businesses turn to when they need accounting and financial advice? According to a recent study by a UK group, the Association of Accounting Technicians, 19 percent of SMEs surveyed said they would simply Google their questions when they need financial advice, while 22 percent said that said they would turn to an actual accountant. A similar study last year found that those who said they would Google for information was over 30 percent, with an equal percentage saying they would turn to an accountant. We hope accountants are providing plenty of quality information on the web.
Nick Clements (@Npclements)—In the 1960s, the credit card started a revolution in how we make payments and borrow money. Fifty years on, the credit card industry continues to grow. Behind that growth are some of the same principles today’s Fintech businesses are trying to use to disrupt banking and finance: Aggressive use of data and advanced, real-time statistical modeling; branch-free lending; and low cost digital customer service. Fintechs trying to disrupt them are going up against the inventors of the game, writes Nick Clements in Forbes.