‘Blog’
“Time is Money” –Can Outsourcing save you time?
Time is a constant. There are just so many hours in the day. If you can free up your time by outsourcing some of your tasks, just imagine how much more you can accomplish in a day…..
Many business owners have discovered the benefits of outsourcing work, from administrative tasks, to projects to accounting services. The time needed to locate vendors, evaluate services, collect bids and make payment arrangements, must be evaluated for each project or service. To get started, try posting a simple job on an online outsourcing service.
Here are some ‘Outsourcing Tips’ that you should consider:
- Don’t commit to long-term contracts. (To start, begin with short term contracts – three to six months. You want to find a couple of good resources and have some time to assess their work product.)
- Make sure you have a clear contract. (Obtain legal assistance in drafting a solid contract that protects your interests)
- Communicate effectively. (Be clear with your vendors on the preferred method of communication. Also be clear on the frequency of communication. This is the key to sucess in any outsourcing relationship!)
- Define your project clearly. (Make sure you give clear instructions to your vendors – time can very easily be wasted when poor instructions are communicated. Written instructions usually work better than verbal instructions.)
- Be firm about deadlines (Communicate your expectations in writing)
- Be flexible about ideas from vendors. (Be a good listener. You might learn something of value)
- Be sure you understand the contract terms and charges. (This is where a good contract will spell out everything. There should be no surprises)
- Pay all vendors as promised. (No one likes to work for free. Agree upon a payment shedule and stick to it.)
5 Good Cash Flow Practices
We have all heard the saying “Cash flow is the life blood of a healthy businesses”. But what does this mean exactly and are you running your business in a way that helps you collect your money easier and faster? Here are some good practices that you should be following:
1. Get paid in advance: With retail operations, it is the norm for customers to pay prior to receiving any goods. Other service businesses, such as, online training workshops, distance learning, professional events, doctors, dentists, etc - all require payment up front – to some degree. So why then do some professionals feel funny about getting paid up front? By estimating your service fees and billing your client for at least 50% of the fee before you begin work – your clients will get used to this practice. You can start by asking for an upfront deposit with the balance due upon delivery. Why should anyone have to wait 2, 4 or 6 weeks to be paid for services already rendered?
2. Bill early/ bill often: Choose a day, early in the month, such as the 1st or 5th of the month for processing your invoices. Send out your invoices every month on the same day. Utility and phone companies bill on the same day each month. Their bills consistently go out without fail on a regular schedule. By billing early in the month – you can expect to receive the payments earlier also.
3. Be tenacious with past due accounts: When an invoice is overdue, contact the client immediately. You can call, fax or email your client in a polite – yet firm manner. Tell your client that you do accept plastic and ask them to put the past due amount on a credit card. Afterall, you did the work in good faith and you delivered the work product to your client. You deserve to be paid in the same manner
4. Recurring monthly payments: To streamline the receipt of payments from your customers, set up monthly recurring payments to be billed to a clients credit card. While you are providing services to these clients - you will not need to send another invoice or statement. You can also arrange wire transfers through your client’s bank. Paypal.com also offers automated payments.
5. Check your bank accounts regularly: Each month you have numerous checks, money orders, paypal deposits, cash payments, etc. hitting your bank account. Don’t assume that the bank is alway right and never makes mistakes. Reconcile your bank statements regularly each month and immediatly report any discrepancies to your bank and/or mechant accounts department.
“AUDACITY” – Open Source Audio Editor & Recorder
I finally got a chance the other day to check out this really cool audio editor software called – “Audacity”! I needed to create a simple MP3 or WAV file and wanted something that was easy to use and free. I had heard about Audacity a while back – but had never actually used it.
Well – I decided to do some quick web searches and came up with links to download the software as well as links to learn more about the software. And what I found is that you can do a lot with this program! Besides creating live audio, you can cut, copy and mix sounds together as well as edit any MP3, WAV, or AIFF files. There are many more features and you need to check it out for yourself. I was able to complete my little project very quickly. It was a breeze….
Check out the link and decide for yourself!
Finance Staff Reductions? —Why not consider a Virtual Professional?
Nearly every business has been affected by this recession – in one way or another. If you are lucky enough to be in a recession proof industry – maybe you are not feeling the pains as much. Although, the list of recession proof businesses is pretty short, if you really think about it. So what is a business to do?
In order to remain in business and remain profitable – you will still need to keep accurate financial records and be able to interpret that information – recession or not. You also might need financial advice and accounting assistance. If you are trying to keep expenses as low as possible and have considered staff reductions – how will you be able to keep your accounting system straight?
Have you ever considered hiring a Virtual Professional (VP)? The VP’s at Virtual Expansion can provide your company with a multitude of accounting and financial services tailored to meet your needs and more importantly your budget. We will work with you on a weekly, monthly, quarterly, or annual basis. We will assist you every step of the way.
If you would like to find out more – contact us
12-31-2009: Happy New Year 2010 !!!
VirtualExpansion.com has officially launched and is accepting new clients !! Mention this blog post for a special discount on Virtual CFO/controller services through January 31, 2010.