Issue link: https://read.dmtmag.com/i/55968
36 • MARCH 2012 • WORLD FENCE NEWS As we have reviewed in this series of articles over the past several months, systems and operating proce- dures can be set up for any business, even one as diversified and with as many moving parts as a fencing con- tractor. I have suggested ideas on sys- tems and operating procedures to help and guide your employees to perform the countless number of day-to-day Collecting your money Establishing the most efficient business processes, procedures and systems BY TOM LUBY, PROFIT BUILDERS INTERNATIONAL tasks involved in running a successful fence contractor operation in the most efficient manner possible. Now that all the work is done and the fence in- stalled, it is time to review the steps in the most important procedure of all: the procedure to ensure that you get paid. Excessive accounts receivable will Veterans make great employees! Fence professionals, before you make your next hiring move, please consider our nation's military veterans first! Members of the fence community are proud patriots. We must do what we can to help our dedicated military men and women re-enter the workforce after their tours of duty. And please give special attention to disabled veterans, as they have sacrificed so much in the name of this great country! But where do you begin? By visiting the web site www.hirevetsfirst.gov you can locate information that will put you in contact with your Local Veterans Employment Representative (LVER), as well as the Transition Assistance Program (TAP) manager. They can provide information on how to proceed. And please join with the Chain Link Fence Manufacturers Institute (CLFMI) as its members try to raise awareness through the Hire a Hero Program. Be recognized by the fence community for your participation! Applications are available at www.chainlinkinfo.org This message is brought to you by Dynamic Tube and Pipe Co., a proud supporter of all U.S. military veterans. sink any company, so the best assur- ance that you will get paid when the job is complete is the one that ad- dresses collections at the earliest pos- sible stage and is consistent and thorough in dealing with past due ac- counts. A good collection procedure is as essential as the actual sale for the prof- itability of the company. Slow paying customers create significant cash flow problems as well as costing the com- pany time and money to make the col- lection, not to mention possible interest expense on borrowed working capital. Regardless of the profitability of the sale, if the company fails to collect, you lose the cost of the labor and ma- terials, not to mention your overhead contribution from that job. Effective collection procedures begin well before the bill is due and payable. The elimination of problems before the payment due day will greatly enhance the ability of the com- pany to be paid on time. This is very important to remember. Collection procedures must be based on persistent and constant fol- low-up with a mixture of controls that become increasingly severe. Since cir- ACCESS CONTROL KEYPADS Advantage DK- Digital Keypad 12-24V AC/DC, 1000 codes, latch code and night light, 2 relays, event input, optional intercom and camera. Advantage DKLP- DK Low Power The DKLP is designed for solar gate operator use. 22uA use at 12 VDC and 50 codes. Advantage DKE- DK Economy 12-24V AC/DC, 100 codes, latch code and night light. Commercial quality, Easy to program! (800) 541-5677 Choose your AAS Keypad ~ Quality You can Count on! Advantage DKS II- DK System Flexible and stand alone with printed audit trail and 2 keypad access points. Perfect for Mini-Storage. PC based Keypad- RemotePro ProAccess 200 PC controller and RemotePro Keypad make up this system for the power of PC access control. RemotePro- Wiegand Keypad Wiegand keypad, 26 bit, dip- switch settable facility code. www.americanaccess.com cumstances vary depending upon the type of fence and customer, several different alternatives are available. It should be noted that the collec- tor should never threaten to initiate legal action unless you intend to fol- low through. The following illustrate the principle elements of any good col- lection policy. • Timely billing to the customer with well-defined payment terms. • Preparation of a weekly accounts receivable aging list. • Persistent follow-up using stan- dardized collection procedures. Payment terms will vary, espe- cially between commercial and resi- dential customers; therefore, each situation and circumstance should be addressed separately in our collections procedures. The collections procedure will involve not only the sales staff, but also the crew foreman, management and office personnel. Also, remember that your invoice or statement must be thorough and include every little de- tail, just in case questions arise after the job is complete. Collection procedure for commercial and residential fence contractor accounts The initial collection procedure is quite different between commercial and residential customers, so again I will address each separately. Once both commercial and residential ac- counts are in the system and are even one day past due, there are then many similarities in how they are handled. We will review each. For commercial accounts the col- lection procedure begins prior even to the bid review, with a determination by management on the credit-worthiness of the GC or developer. If the com- mercial account is deemed too risky, you may be better served not to even submit a bid, but if the commercial ac- count is determined to be credit wor- thy, upon a successful bid and acceptance of the contract and prior to the time of the first invoice, a confir- mation that current credit information must be on file and updated is neces- sary. Naturally, for all government, state and many larger jobs you will receive a payment and performance bond to assure you will be paid, but as many of you already know, that still does not guarantee payment. The credit information must in- clude all the appropriate information; customer name, address, telephone number, and terms must be recorded. Obtaining a D&B credit rating is ad- visable, and verification of the ability to charge (and who is authorized) must be noted and that customer must have contin ued on pa g e 38