Operational Plan - Accounts
Managing
Your Accounts Receivable
If you do extend credit, you should use an aging
chart to track how much of your money is tied up
in credit given to customers and to alert you to
slow payment problems. A receivables aging looks
like the following table:
|
|
Total |
Current |
30
Days |
60
Days |
90
Days |
Over
90 Days |
| Accounts
Receivable Aging |
|
|
|
|
|
|
| |
|
|
|
|
|
|
If you extend any
credit, you must create a policy for dealing with
slow-paying customers:
- When do you make a phone call?
- When do you send a letter?
- Will you use an outside collection agency?
- When do you get your attorney to threaten?
Managing
Your Accounts Payable
Your accounts payable need to be similarly aged:
what you owe to your suppliers. Creating a similar
table helps you plan whom to pay and when. If you
pay too early, you deplete your cash, if you pay
too late, it can cost you valuable discounts and
can damage your credit. (Hint: If you know you will
be late making a payment, call the creditor before
the due date.)
Do your prospective
vendors offer prompt payment discounts? What are
the discounts?
A payables aging
looks like the following table.
| |
Total |
Current |
30
Days |
60
Days |
90
Days |
Over
90 Days |
| Accounts
Payable Aging |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Back to more Business
Plan for a Startup Business
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