Notarealsignguy
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Do your payments slow down in December for your customers with terms or is it just me? Our AR is ugly right now, seems like every year end people want to spend but not pay
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Is it just me??
- Thread starter Notarealsignguy
- Start date
WYLDGFI
Merchant Member
We typically get a flurry of checks after the 1st. Sometimes checks are dated December 30th....etc. I do feel your pain though. People are typically dragging things out longer and longer and using the excuse of "didn't receive the invoice" with us. Making a change on that come January.
I think it depends on the tax situation of the business and possibly political considerations. Just guessing that some businesses struggling might defer payments so expenses go against profits in a better year or one in which taxes may raise. Last year 2019 I had a record year so I paid several large expenses due early 2020 in 2019 to offset revenue. Problem is, even with pandemic, we are almost even with last year so I just added to 2020 profits by doing that, but at least realizing those profits at today's lower tax rates.
Regardless of your politics, would be hard to see a scenario where a dem majority in both houses won't raise taxes on small business owners who fall into the middle income brackets that were lowered in the tax cut which they vehemently opposed.
Regardless of your politics, would be hard to see a scenario where a dem majority in both houses won't raise taxes on small business owners who fall into the middle income brackets that were lowered in the tax cut which they vehemently opposed.
Notarealsignguy
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That's not actually how the tax rate works but I know what you're saying.
Texas_Signmaker
Very Active Signmaker
I think Robert could really be of some help to you. I suggest giving one of his 45 minuet zoom calls a try. He will tell you to LISTEN to your customers as they tell you the check is in the mail. Then he can sharpen your scissors so you can take them to your dead beat clients throat's
Stacey K
I like making signs
Here's something funny. My parents have owned some storage units for many years. They have a list of people who wanted to buy them. A couple months ago they decided to sell them. The first guy on the list is a friend and they are extremely liberal. My parents told them if Biden wins they need to have the deal sealed by the end of the year because Biden is raising the capital gains. If they have to pay the extra capital gains, they will just keep them instead. They can't seem to move quick enough and the bank won't work with them to get it done. They got a little taste of what they voted for and now missed out on a great opportunity for permanent monthly income. I think it's funny...they don't. They still have a few days but it doesn't look like they can make it happen.
Joe Biden is a corporate democrat. I'm baffled as to why people think they're magically going to be killed by taxes. Also, even if Biden did want to adjust the tax code, it's unlikely most posters on here would be effected negatively, and even further, he would need 2 more Senate seats, which is unlikely. So I'm perplexed by the fear mongering and insanity being posted here.
As for people not paying their bills, people generally want to close out their books by early December. So you'll either find people wanting to pay off bills to lower their tax burden or wait until the next year, just to make things a bit more simple when doing end of year accounting. Taking into consideration everything going on this year, it could also be a result of businesses flat out not having money.
As for people not paying their bills, people generally want to close out their books by early December. So you'll either find people wanting to pay off bills to lower their tax burden or wait until the next year, just to make things a bit more simple when doing end of year accounting. Taking into consideration everything going on this year, it could also be a result of businesses flat out not having money.
Geneva Olson
Expert Storyteller
Because traditionally, democrats raise taxes to support the lower economic classes. We get a higher tax in business during a democratic run presidency, regardless of who the democrat President is.
He's a career politician first.
Notarealsignguy
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I'm no accountant but people holding or paying invoices to better their tax position doesn't make much sense to me. I always thought the expense was taken on invoice date, not whenever you decide to pay it. Most people just finagle year end money by sticking it in work in progress or deposits to carry over the revenue to the following year.
Texas_Signmaker
Very Active Signmaker
Yea, you would think people would WANT to pay before Dec 31 to get the expense.
Notarealsignguy
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Might be wrong but I think that is the case for cash based accounting but not for accrual
204SignGuy
Assistant to the Regional Manager
It may not even be Biden, as much as Harris trying to appease the far left radicals. I know here as soon as we switching from Liberal to Conservative provincial government, taxes went down within a year. The former government just kept raising and spending. Living in a conservative area, none of those tax dollars came back until the new government stepped in. All of a sudden we've got new schools and more healthcare funding.
Depends on how you set up your books; cash or accrual. We operate on cash basis so a sale isn't a sale until we receive the funds, and an expense is an expense when paid.
This is why it's important to discuss policy based on fact and not emotion. It's not 'fear mongering' or 'insanity' to express concerns about impact of elections on my business's health on a sign business forum. You are correct in noting the balance in the Senate will have an impact. If the 2017 tax bill is reversed (https://www.forbes.com/sites/anthon...dency-mean-for-your-tax-bill/?sh=3615898f44c2) , I'm concerned it will undo much of the economic growth that happened as a result. For example, if the 20% pass through deduction is eliminated, LLCs, LLP, S-corp, partnership or sole-proprietor will see an immediate 20% tax increase. When I received the cut, I immediately gave half to the employees in a raise and used the other half to purchase a printer. On top of that, we had record years in 2018 and 2019 so still paid more tax $, just not as large a percentage. It stands to reason that reversing that cut would have a similar, opposite impact. How many sign businesses here on S101 are organized in those ways? Probably the majority. Those that are not would see an increase in their corporate income tax rates. . Would welcome an opposing view without the name calling and unproductive emotion.
Notarealsignguy
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Yes but the majority of people are on accrual basis, like these people that owe me money.
I'm not an accountant either, so certainly not an expert. But when i set the biz up, my understanding that businesses that carry a lot of inventory (like distributors or retailers) benefit from accrual basis and light made-to order manufacturing where little inventory is kept benefit from cash basis. Wouldn't have any way of knowing my customer's accounting method, so just speculating. We have the opposite - getting a flurry of payments. Maybe the customers giving you problems are disorganized or financially stressed?