Accounts Receivable
Reporting Rules for Organizational Actions Affecting Security Basis
Enacted as part of the Energy Improvement and Extension Act of 2008, Section 6045B provides that an issuer of a specified security must file Form 8937, an informational return, with the IRS following an organizational action that affects the basis of a specified security. Additionally, the issuer is required to furnish a written statement with the same information to each holder of the security unless the issuer complies with public disclosure rules. §6045B applies to organizational actions occurring on or after January 1, 2011 by any public or private entity taxed as a corporation for U.S. federal tax purposes, whether. Read More.
Let Go of Clients that Cost Your Business Money
Some business owners who were worried about losing customers are now dropping those who are too demanding or pay late. The Wall Street Journal reports on how cutting off customers might improve your business. As a result, by eliminating 5% of her clientele this year, the 36-year-old is saving 20% more of her time while the Web-site development firm’s 2009 revenue is on track to rise 10%. “It was the best decision I’ve made, because it really reduced the level of frustration that I was experiencing,” Ms. Rogers says. “It freed me up to the clients that are loyal and pay on time.” Still,. Read More.
Collecting Receivables Just as Important as Making Sales
In a recent column at Richmond BizSense , Stan Maupin stresses the importance of a proactive accounts receivable strategy, especially given the current economic climate: Some widely used payment terms are simplistic and even counter-productive. Offering a discount for early payment is common but it can be expensive and limited in effectiveness. A 2 percent discount can represent 10 to 20 percent off of your net profits and, once the discount date has passed, your customer has no incentive to pay or to buy more products. Many businesses set an arbitrary limit on the number of days a customer can be late with payments and. Read More.