A discussion of the elements of planning and implementing a successful points-based incentive/loyalty program can be found in the public articles section of our website.

I recently came across a very good article on employee theft and occupational fraud that any small business owner - especially those that deal with cash should read.

It is also a good idea to review with some of the controls in FloristWare. Our theft prevention tools are some of the most powerful - and least used - features in the system.

Nobody ever wants to think that they might have a problem but it almost certain that you will be a victim at some point. It is best to use the tools as a deterrent before you have a problem.

Part 1 - The Suspicious Activity Report
Part 2 - Late Cancellations
Part 3 - Cash Refunds for Non-Cash Payments (Same Day)
Part 4 - Cash Refunds for Non-Cash Payments
Part 5 - Cash Refund On The Same Day As Sale
Part 6 - Reducing Internal Theft
Part 7 - Advanced

One of the most powerful features in FloristWare is the ProgressTracker - a tool that lets you follow each order throughout the entire process - helping you with preparation, shipping and delivery. It finishes up by sending a delivery confirmation to the customer.

Most of the time users are advancing orders through the system from "Preparation" to "Ready To Ship" to "Out For Delivery" but, sometimes, a mistake is made and a user wishes they could move an order backwards in the process.

Here is an example - they accidentally move an order from the "Preparation" area to the "Ready To Ship" area before it is actually ready.

Most users don't realize that they can move the order backwards - in fact it's actually very easy! Just hold the shift key down and click the button you would typically use to advance the order.

This tells FloristWare that you actually want to move the order backwards and it will ask you to confirm that. Just click "Yes" and the order moves back.

Earlier in the week I spoke with a user that was not printing the cash-out sheet as part of the Daily Sales Report. Instead they were reconciling payments to receipts - a much more complicated way of getting the same result.

Users are strongly encouraged to print the cash-out sheet each day and just balance to that. It's quick and easy and gives you everything you need.

There is an excellent article on the American Express OPEN Small Business forum called 5 Ways to Make the Collections Process Easier.

We hope all FloristWare users will take the time to read it. Each of the five points they mention are great and we are going to examine how FloristWare can help with each of them.

1. Plan for collections from the start

...recommend making your first contact with a new customer with the collections process in mind. "Be careful on the front side in who you extend credit to," Brumback suggests.... Make a copy of the person's driver's license"...

Many florists extend credit to anyone who asks for it. People from outside the business generally agree that florists are far too generous in granting credit. Florists generally disagree - they often feel that credit is expected and if nothing else may give them a competitive advantage.

It is your decision to make but credit is a privilege and not a right. If a customer asks for credit you have a right to ask for certain things in return.

At the bare minimum you should have the customer complete a credit application. You probably are not going to run a credit check but this gives you some information about the person/business you will appreciate if you ever have to collect. Ideally you will also get a credit number for security.

We believe credit applications are so important we first included them as a feature in FloristWare v2.5.

Any customer that requests credit should be required to first complete and return one of these applications. An even better approach is to ask them to complete the application and actually pay for their first purchase while you review it but, at the very least, get the application completed.

Next Tuesday we will talk about #2.

Today we are going to look at how FloristWare can help with item #2 on the excellent article on collecting receivables from the American Express OPEN Small Business forum.

2. Put a standard system in place

... If your invoices don't go out on a regular basis, a past due account may be more a matter of the client not realizing that there was an invoice than choosing to ignore it...

Many florists are accustomed to sending invoices/statements once a month. Typically this is more out of habit than anything else.

There was a time when AR orders were written on paper, rung through a cash register and then left for a bookkeeper to enter into an Accounts Receivable system at some later point - usually once a month. Statements would then be run (and it usually wasn't easy - another reason for doing it infrequently).

Once they switch to FloristWare they continue doing things this way but we hope they will consider changing. FloristWare gives you the option of emailing/faxing/printing (ready to mail) invoices as soon as a sale is charged with a single click. All users should definitely do that!

Why? You will get paid quicker. If a customer orders on (for example) August 2 why wait until August 31 to bill them? You definitely won't be paid until they get the invoice so get the invoice to them as quickly as possible. If you want to be generous with terms you can specify thirty days but start the thirty days as soon as the sale is made - not almost a month later when you finally get around to invoicing it.

But there is another important consideration. If you wait weeks to invoice the flowers are almost certainly already in the garbage. People are far more inclined to pay quickly if they are still enjoying the item. They will to some degree resent (and drag their feet) paying for something they have already discarded and can barely remember.

That last part about remembering is very important too. When someone gets an invoice while the purchase is still fresh in their minds they are far more likely to pay quickly. If they get it a month later they hesitate. "Flowers? Did I order flowers last month? I don't remember. I'll have to check that out - later". At this time sending payment involves some research. That means work - work they are very likely to put off until you start chasing the payment.

And the last reason for invoicing immediately? FloristWare makes it so easy! You just click a button and it's done. It's actually more work to generate statements later.

Please - take full advantage of FloristWare and send invoices as soon as sales are charged.

On Thursday we will talk about #3.

Today we will look at how FloristWare can help with item #3 from the excellent article on collecting receivables on the American Express OPEN Small Business forum:

3. Remember that your customers are valuable

In a collections situation, there's a tendency to see a client who hasn't paid as the bad guy. It's completely understandable, but an approach based on that viewpoint is almost certainly going to put a client off. After all, no one wants to feel like they've done wrong, no matter the actual circumstances. Finding an approach that takes the client into consideration is crucial.

Barry Maher may now be a motivational speaker and consultant, but he made his mark as a salesman and sales manager. Maher says, "For me, the key to dealing with customers who are behind on their payments is to treat them as valued customers. To avoid embarrassing them, we start out by 'just touching base' to see if the payment fell between the cracks or there was some oversight. Then we show understanding, allowing them to save as much face as possible and, at all costs, avoid getting their back up, so they become defensive and look for reasons why they shouldn't have had to pay in the first place."

This is true - customers are valuable. It's also important to remember that not all customers are created equal and you should use the AR tools ine FloristWare to help you tell them apart.

For example - you may have a long standing customer who buys a lot, generally pays well and is starting to fall behind a little. That seems like a good customer who is in a rough patch. You want to work with them so that you can get your money and continue the relationship when things get better. You don't want to anger them to the point where they start buying their flowers elsewhere. In addition to losing that future business you also increase the chances that they decide to not pay at all.

Another customer may have bought a lot but not made payments. This is an entirely different thing - a customer who doesn't pay isn't worth very much at all. There are lots of people and businesses that do this - go to a new vendor, start charging and not paying, until they get cut off and move to the next one. If a customer has no payment history you have reason to be concerned and you need to stop the bleeding. Those may be pursued more aggressively - when their is no relationship and no payment history it makes sense to (at the very least) suspend the account.

Another situation might involve a customer who used to buy a lot and pay well. Suddenly the payments have stopped and you are starting to worry.

What is happening with their purchasing? If they are not purchasing at all as their balance gets older a couple of things might be happening. They might be cutting spending so they can get current. They may also have moved on to another vendor once they got the impression you were losing patience with them. Once that happens it will be tougher to get payment - and any future business - from them.

Collecting receivables is tough. You want to collect your receivable with alienating your good customers. That means you have to have to be careful and review it on an account-by-account basis - don't just send the same threatening letter to everyone. Use the tools in FloristWare (Payments by Accounts, Purchases By Account, Aged Receivables By Account, etc.) to help you differentiate between your accounts and deal with each in the appropriate manner.

In this post we'll review how FloristWare can help with item #4 from the article on collecting receivables from the American Express OPEN Small Business forum:

4. Don't let the situation drag on

...Getting an account paid quickly is just as much a priority as getting it paid in full...

This is incredibly important. The longer you let an account go the less likely they are to pay. At best you are subtly teaching them that they can let things slide with you, that you are one of the vendors they can get away with paying last - an impression that means you will always get paid late. An even bigger concern is that they may go out of business or be totally broke before they get around to making payment. The actual outcome isn't as important as one simple truth - it's always better to get paid sooner rather than later.

How can FloristWare help? It starts with invoicing - take advantage of the feature in FloristWare that lets you send invoices automatically as soon as you complete the sale.

Next - stay on top of accounts with the receivables aging and Payment Chaser reports. These are designed to help you collect faster.

And don't be afraid to call. Florists generally don't want to make collections calls and often choose to just insert punitive terms on statements in the hope it will catch someone's attention. It probably won't - if someone is way behind it is likely they aren't even opening them. Use the payment chaser and give them a call. That is what it's for. Send duplicate invoices as needed - FloristWare makes it easy.

Also - change their account status. That way FloristWare will flag it if they try and make additional purchases so you can ask about their outstanding balance. And of course you should freeze their account as soon as you start to think you might not get paid.

In this post we'll review the last - and most difficult - point from the article on collecting receivables from the American Express OPEN Small Business forum:

5. Know when to walk away

The hardest part of the collections process is recognizing when there simply isn't a way left to get a customer to pay an account in full. Whether you're dealing with a customer who has declared bankruptcy or simply disappeared, there is a point where it's simply a matter of giving up — rather than using your time to chase after an unpaid account, using that time to find new customers is just more practical.

You don't want to give up too easily, of course. But if you take a good, hard look at how likely your business is to receive payment and it seems to be close to impossible, it's time to consider settling for less or even walking away.

There may come a time you have to accept that payment may not be coming. At that point it is better to spend your time and energy collecting on the accounts that are more likely to pay or - even better - by concentrating on building new sales and getting new accounts.

Use the reports and notes in FloristWare to help you gauge when an account is a lost cause and then use the "write off" tools to clear it out so you aren't constantly being reminded about it. You also want to be sure to close the account so that no further charges can be made.

We have a lot of new users over the past few months and - as they become more familiar with FloristWare - they are starting to ask more advanced questions. With that in mind we're going to review some of the most important topics.

First we're going to look at charge accounts. A charge account lets your customers charge their purchases to an account and be billed later. Related articles appear below:

Accounts Receivable: Adding New Accounts
This article will show you how to add new charge accounts.

Accounts Receivable: Clearing Credit Balances
This article will teach you how to "Tidy-Up" your Accounts Receivable by clearing any accidental overpayments.

Accounts Receivable: Default Accounts
This article explains how default accounts are selected and "attached" to your customers.

Accounts Receivable: Editing An Account
This article will show you how to edit the information that you have on file for an account.

Accounts Receivable: Opening Balances
This article will show you how to record an opening balance when opening a new account.

Accounts Receivable: Recording Payments
This article will teach you how to accept a payment on account.

Accounts Receivable: Writing Off Unpaid Invoices and Balances
This article will show you how you can write off unpaid invoices and balances in your Accounts Receivable.

It is also a good idea to read up on Deferred Payments - starting with an explanation of how they differ from charges to accounts:

Payment Methods - Deferred vs Account
What is the difference between 'Deferred' and 'Account' Payment Methods?

Defer Payment: What It Means and When To Use It
This article explains what the "Defer Payment" option does and how it is meant to be used.

Defer Payment: Collecting Deferred Payments
This article explains how FloristWare can help you collect deferred payments.

Defer Payment: Taking Deferred Payments
This article explains how to enter a payment for a sale on which payment was initially deferred.

Some of our newer users have been showing a lot of interest in some of these powerful features. We haven't covered them in a while so we've assembled some material below.

Reminder Calls

Reminder Calls: Set-Up
This article will show you how to activate the Reminder Call feature.

Reminder Calls: Making Effective Reminder Calls
This article will show you to make effective reminder calls that turn into orders.

Sales Calls

Sales Call: Set-Up
This article will show you how to activate the Sales Call feature.

Sales Calls: Making Effective Sales Calls
This article will show you how to make effective sales calls.

Listen in iTunes
If you spend any time stuck in traffic you might consider listening to this series of seven podcasts covering these and other FloristWare marketing strategies.

Some of our newer users have been showing a lot of interest in some of these powerful features. We haven't covered them in a while so we've assembled some material below.

Reminder Calls

Reminder Calls: Set-Up
This article will show you how to activate the Reminder Call feature.

Reminder Calls: Making Effective Reminder Calls
This article will show you to make effective reminder calls that turn into orders.

Sales Calls

Sales Call: Set-Up
This article will show you how to activate the Sales Call feature.

Sales Calls: Making Effective Sales Calls
This article will show you how to make effective sales calls.

Listen in iTunes
If you spend any time stuck in traffic you might consider listening to this series of seven podcasts covering these and other FloristWare marketing strategies.

Many newer users have mentioned that they get a lot of "do you know if my order has been delivered yet?" calls.

FloristWare can help. The ProgressTracker feature will give you instant access to the status of any order and can also be used to send delivery confirmations.

For detailed instruction please see this instructional video.

FloristWare allows you to discount by either percentage or fixed amount at the sale, order or item level. For more information please see this support article.

Some users have asked about the process of selecting Product Categories and Products - specifically the default sort order of the lists. Even more specifically they have asked why it is that newer products/categories go to the bottom of the list.

The answer is that - by default - FloristWare sorts these lists by popularity. Every time a product/category is selected it's popularity increases. Each time you come to the list FloristWare puts the most popular items at the top.

This is a problem when you introduce new products/categories because they will go to the bottom of the list and stay there until they "catch up" to the other older products. Fortunately there are several solutions.

The first is changing the sort order of the list - just click on one of the blue column headers to sort the list by that criteria, click again to reverse the sort.

You can also reset the popularity:

Settings > Lists > Product Categories > Erase Popularity
Settings > Lists > Products > Clear Popularity

These buttons will clear the popularity so that all products/categories start over and the most currently popular will quickly rise to the top. This is very handy if you introduce seasonal products and want them to appear first.

There is a third solution if you don't like the popularity sort and would prefer to go use an alphabetical sort by product name. The advantage here is that the list never really changes - some people find that kind of consistency easier to work with.

Settings > Policies > Policy - Default Sort Order

This will allow you to choose the default sort order you feel will work best for your store.

Every day you run a daily sales report. Do you also take the time to fill out the information in the "Notes" tab?

You should. You don't have to get into a lot of detail but enter information about the weather at the very least and some staffing comments if at all possible.

Why? Because you can then use the "Daily Notes" report to make some really interesting predictions. For example: It is Wednesday afternoon and the forecast says Friday will be very cold and snowy. You can search for all cold, snowy Fridays and FloristWare will show you the trends for those days. This lets you plan efficiently.

You'll need to stay it for a while - the feature is useless until you have some history in the system. Once it's there you will be glad you did it.