We process vendor payments for clients. We can manage these as needed using a combination of autopay, bank bill pay, and other methods. If we are also doing clients’ bookkeeping, we can create a smart process to enter and review bills to ensure our clients understand their expenses and pay on time. 

Best Practices for Client: 

• Define a regular “check run.” Whether weekly or less frequent, standardize when bills are entered, reviewed, and paid. 

We invoice client customers. Depending on the business, we may send invoices every month, upon project completion, or not at all. We can advise on the best approach and develop a process to minimize unpaid invoices and follow up when necessary, or we can manage if we also do clients’ bookkeeping. 

Best Practices for Client: 

• Invoice all clients (unless on autopay) to ensure collection. Communicate terms and payment options with invoice. 

• Run Accounts Receivable aging regularly and follow up with outstanding balances. 

• Communicate policy for work to stop if an account is delinquent. 

We perform some common administrative tasks for clients, such as filing annual reports with the Secretary of State and renewing business licenses. We can also take tasks off our clients’ plates such as filing and organizing business documents. 

Best Practices for Client: 

• Form an LLC (limited liability company) or other legal entity when owner perceives significant risk in the business. Note that earning significant revenue may be considered significant risk on its own. 

• Elect S-Corporation tax status with the IRS when net income far exceeds a “reasonable wage” paid to the owner. This saves a lot of taxes.