Bohemia, NY (PRWEB) September 05, 2013
Lawrence Teicher, founder of CFO Consulting Services LLC, a CFO services company, comments on an article published by CFO.com, which details why some customers don’t pay their invoices on time.
According to the article published on CFO.com on July 30 titled “Why Firms Don’t Pay Their Invoices,” TermSync, a piece of software that develops B2B with payment solutions, researched into why many customers don’t pay their invoices on time. The article says that after surveying about 100 CFOs, controllers and accounting executives, almost 50 percent said the reason for most unpaid bills is “invalid or missing purchase order information on invoices.”
Another reason for hiccups in the payment stream is customers not having enough money. The article says TermSync found that 27 percent of companies said their customers did not have enough money to pay for the products and services, or they could not get in contact with the customer to talk about solutions.
Lawrence Teicher, founder of CFO Consulting Services, a CFO services company, says many small businesses lose money due to these unpaid invoices and do not have the resources to constantly monitor their accounts receivables. “These are the types of avoidable problems that plague small businesses,” he says. “Small businesses and startups are generally understaffed in the financial department, which is why hiring a part time CFO is usually a smart decision. It’s important to track the money trail as to not lose out on payments due to ineffective information systems, understaffing, and inadequate audit and collection procedures.”
Teicher also says most of the time it’s not the customer’s fault for not paying invoices. “Businesses are quick to point the finger at the customer and eat the lost profits, rather than fixing the problem,” he says. “This is not the way successful businesses are run. CFOs and accounting execs need to take control of their billing departments to ensure each customer gets a clear, correct and complete invoice for each transaction.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.