Well, as we are indeed rounding into the final quarter of 2016, how are things going in your business? I’d love to know what we could be doing to help you finish the year strong.

I hope it’s obvious to you, but the reason we exist at all is simply to make your financial life easier. We take great joy in providing our San Antonio business owner clients with the best kind of vision into the financial realities of their businesses.

But, as you can probably gather by the fact that I take the time to write to you each week — we’d be glad to assist you with *every* aspect of reaching your goals. We’re much more than just some dry accounting firm.

So, again — let me know if there’s anything we can do to help you as we move into this final quarter.

Turning to this week’s Strategy Note, I wanted to give you some quick advice, which is especially pertinent in this economy.

One Common Reason Many San Antonio Companies Go Out Of Business
“The sweetest two words are ‘next time.’ The sourest word is ‘if.'” -Chi Chi Rodriguez

It’s a common problem, and I’ve talked about it before: customers are asking you for lines of credit, or “special deals” when it comes to your AR. So you ask yourself: should I extend credit to my customers?

My recommendation? Don’t do it. Tell them you accept credit cards.

The biggest problem about giving credit is that you end up spending time collecting money. Time that could be more profitably used doing most anything else.

The second biggest problem is that some of your credit customers, no matter how big and prosperous they appear to be, will never pay you. If the accounts/purchases/orders of those customers who don’t pay you are big enough (or there are enough of them), you will be forced out of business.

If there is any chance that a customer may not pay you, it would be better not to make this sale. Time wasted collecting … sleepless nights worrying about payment … and real bottom-line losses, are all inevitable outcomes of playing Russian Roulette with granting credit.

If you *do* slip into the credit-granting trap, be very clear about payment terms before delivery, and insist on any compliance to the day. Make a lot of constructive noise. Be persistent. Call every day. Visit your creditor in person. Let him know how important the money is to you. Wear him down. He is paying someone.

The person who gets paid earliest will be the person who showed the greatest determination to be paid. It should be you.

Collecting money is a critical survival tactic. Do everything in your power never to have to use it. But once you must, be absolutely resolute. It should be your first priority every day. If your experience is sufficiently unpleasant, perhaps you will understand the wisdom of not getting yourself into that corner in the future.

I’m grateful for our chance to serve you and your business — and we are dedicated to its success. Which means we want to protect you from all of what could tear you down…

Feel very free forward this article to a San Antonio business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for San Antonio families and business owners. And we always make room for referrals from trusted sources like you.


Sherry Tolbert
(210) 905-4498
Tolbert CPA LLC