RMAi Blog

NOVEMBER 5, 2024

Are you passionate about shaping the future of the receivables management industry? RMAI is now accepting candidates for the 2025 board of directors. Serving on the board offers a unique opportunity to drive strategic initiatives, represent our members’ interests, and influence the direction of your association. RMAI is seeking qualified candidates who wish to run for a two-year term on the Board of Directors.

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Third Party Collections 130

Your Virtual Credit Manager

NOVEMBER 5, 2024

A client, who rented heavy equipment to manufacturers and construction firms across a multi-state market area, was saddled with an accounts receivable (AR) growing faster than revenue. In other words, they weren’t collecting everything being sold. Three staff members handled both customer service and collection duties, while the Controller managed credit.

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Accounts Receivable (AR) Credit and Collections Credit Management Default 130

Know-It Global

NOVEMBER 5, 2024

Welcome to the month of November! The dark nights are upon us and now that Halloween is over, it seems acceptable to mention Christmas? In October we have been busy developing our internal systems to make communication with our customers even better, as well as improvements to the Know-it platform! Halloween Celebrations with the Team On Halloween we celebrated with a team party!

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TMC Financing

NOVEMBER 5, 2024

Bridging the Gap: How the SBA 504 Loan Program Helped Edmond Group LLC Secure Their Business’s Future John and Susana Edmond, co-founders of Edmond Group LLC, a strategic communications and. The post Bridging the Gap: How the SBA 504 Loan Program Helped Edmond Group LLC Secure Their Business’s Future appeared first on TMC Financing.

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Plooto

NOVEMBER 5, 2024

Most small business owners don’t become entrepreneurs because they love managing finances. That’s why accountants and bookkeepers are so crucial to successfully running a business. Their relationship is an essential part of how SMBs achieve efficiency, scale, and control over their financial operations.

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Small Businesses 52

Cpcmcredit Blog

NOVEMBER 5, 2024

Many of you will be well aware of the recent court ruling regarding disclosure of commissions to brokers in the area of car finance. This has now reverberated around the asset finance market with perhaps a little overreaction from some lenders and a telling silence from others I know of at least one lender who is refusing to take on new business until this issue is resolved in their own minds whilst others have set in motion new procedures where by the brokers commission is advised to their clie

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Cpcmcredit Blog

NOVEMBER 5, 2024

Im not sure whether awards have actually been given out but this site has nominated “best” invoice finance providers in. nine different categories. Here are the results 1. Kriya – Best for its straightforward, user-friendly approach 2. Growth Lending – Best for international companies 3. Skipton Business Finance – Best for its interest-free invoice finances 4.

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Small Businesses 52

Due

NOVEMBER 5, 2024

Is there anything better than celebrating the holiday season with family and giving to others? However, in the season’s excitement, losing track of spending is also easy. In fact, according to the 2024 Deloitte holiday retail survey, respondents expect to spend $1,778 (+8% year-over-year) this holiday season after expressing record holiday spending intentions in 2023.

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Emagia

NOVEMBER 5, 2024

What is Bank Reconciliation? Bank reconciliation is a process where a business’s financial records are matched against the bank’s records to ensure accuracy and consistency. Why Bank Reconciliation is Important Bank reconciliation helps identify discrepancies between a company’s records and the bank’s records, allowing for timely error correction and fraud detection.

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Transactions 40

Due

NOVEMBER 5, 2024

The United States government faces a dire financial situation that has raised concerns about its long-term economic stability. To better understand the gravity of this issue, it’s helpful to break down the complex numbers into a relatable scenario involving two individuals. This analogy provides a clear picture of the government’s debt crisis and its potential implications for the nation’s future.

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Credit and Collections 40

Emagia

NOVEMBER 5, 2024

Introduction to Blocked Orders A blocked order can disrupt the smooth processing of sales and impacts customer satisfaction. Managing these issues is essential for business continuity. Reasons for Blocked Orders Blocked orders may result from credit issues, insufficient inventory, or pending approvals within the system. Resolving Blocked Orders Effective solutions for unblocking orders involve communication with the customer and adjustments to order settings in the system.

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Revenue Recognition 40

Emagia

NOVEMBER 5, 2024

What is DSO? The DSO (Days Sales Outstanding) formula is a key metric that measures the average number of days it takes a company to collect payment after a sale. Understanding DSO DSO provides insights into the company’s credit and collections efficiency and is used by businesses of all sizes. Calculating DSO To calculate DSO, use this formula: DSO = (Accounts Receivable / Total Credit Sales) x Number of Days.

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Days Sales Outstanding DSO Credit and Collections Credit Sales 40

Emagia

NOVEMBER 5, 2024

Introduction to Days Outstanding Formula The days outstanding formula helps companies measure the time it takes to collect receivables after a sale. Purpose of the Days Outstanding Formula This formula is crucial for assessing the efficiency of a company’s collections process. Calculating Days Outstanding The formula is: Days Outstanding = (Accounts Receivable / Average Sales per Day).

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Credit and Collections 40

Emagia

NOVEMBER 5, 2024

Introduction to DSO Calculation Formula The DSO calculation formula measures how quickly a company collects cash from credit sales. Formula for DSO To calculate DSO: DSO = (Accounts Receivable / Total Credit Sales) x Number of Days. Understanding the Results A higher DSO indicates slower collections, whereas a lower DSO suggests efficient collections management.

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DSO Credit and Collections Credit Sales 40

Emagia

NOVEMBER 5, 2024

Understanding Account Receivables Account receivables are crucial assets for any business. They represent the outstanding invoices owed to a company by its clients for goods or services rendered. Managing these receivables effectively is vital to ensure steady cash flow and financial stability. Why Account Receivables Matter Efficient account receivables management can impact a company’s revenue cycle significantly.

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Bad Debt Credit and Collections 40

Emagia

NOVEMBER 5, 2024

What is a Bank Statement? A bank statement is a document provided by banks that summarizes all financial transactions in an account over a specific period. It is essential for tracking income and expenses. Why Bank Statements Are Important Bank statements help account holders monitor their financial activity, detect fraudulent charges, and maintain accurate records for budgeting and planning.

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Transactions 40

Emagia

NOVEMBER 5, 2024

Understanding Remittance Advice Remittance advice is a document sent by a customer to a supplier to inform them of a completed payment. This helps in identifying which invoices have been paid and assists in accurate record-keeping. Importance of Remittance Advice in Business Providing remittance advice can streamline accounts payable and accounts receivable processes, helping businesses maintain accurate financial records.

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Emagia

NOVEMBER 5, 2024

Defining Externenprüfung Externenprüfung, or external audit, is an examination of a company’s financial statements and records by an independent third party, ensuring compliance and accuracy. Purpose of Externenprüfung The primary goal of externenprüfung is to validate the financial integrity of a business and assure stakeholders of its reliability.

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Emagia

NOVEMBER 5, 2024

Understanding Shortfall Interest Charge The term shortfall interest charge refers to the penalty or additional cost incurred when a minimum interest requirement isn’t met. This charge often impacts businesses when certain loan or credit agreements set baseline interest payments. It is crucial to understand these charges, as they can affect financial planning and profitability.

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Default 40

Emagia

NOVEMBER 5, 2024

What is the Days of Sales Outstanding Ratio? The Days of Sales Outstanding (DSO) ratio is a key metric that measures the average number of days it takes for a company to collect payment after a sale. DSO provides insight into a company’s liquidity and cash flow health. Why the DSO Ratio Matters A lower DSO ratio indicates efficient credit and collections management, allowing businesses to maintain stable cash flow.

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DSO Credit and Collections Credit Sales 40

Emagia

NOVEMBER 5, 2024

Introduction to AR Days Sales Outstanding The AR Days Sales Outstanding (DSO) metric measures the average days required to collect receivables. It is crucial for understanding a company’s credit and collections effectiveness. Importance of AR DSO AR DSO provides valuable insights into a company’s liquidity by highlighting how quickly accounts receivable are converted to cash.

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Days Sales Outstanding DSO Credit and Collections Credit Risk 40

Emagia

NOVEMBER 5, 2024

Introduction to Cash Management Solutions Cash management solutions encompass a range of tools and strategies aimed at optimizing a company’s cash flow, liquidity, and financial operations. Why Cash Management Matters Effective cash management is essential for business stability, helping companies to meet financial obligations, invest, and grow.

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Cash Forecasting 40

Emagia

NOVEMBER 5, 2024

Understanding Blocked Orders A blocked order occurs when an order is temporarily halted due to issues like credit limitations, pricing discrepancies, or stock shortages. Why Orders Get Blocked Orders may be blocked for various reasons, such as credit holds, overdue payments, or violations of pricing policies. Types of Blocked Orders Blocked orders can be categorized by reasons like credit block, delivery block, or quality issues, depending on business needs.

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Emagia

NOVEMBER 5, 2024

Introduction to Cash Conversion Period The cash conversion period represents the time it takes for a company to convert investments in inventory to cash flow from sales. Managing this period is essential for efficient cash flow management. Understanding Cash Conversion Cycle The cash conversion cycle (CCC) is closely related to the cash conversion period, as it reflects the entire cash-to-cash process in a business.

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