Spot problem accounts early, and take action
 

If you extend credit to your customers, some losses are inevitable. So unless you are willing to forgo the credit part of your sales, you have to figure out ways to control your bad debt losses.

You don’t want to crack down on a good customer too hard too soon; yet you don’t want to be “taken” by a debtor who has become unable or unwilling to pay.

What you need is an early warning system to detect a credit problem in the making. Then you can stop selling to that customer and begin collection procedures in earnest. Here are some of the telltale signs that point to an account that is turning sour:

The debtor has begun paying erratically.
The debtor fails to return your phone calls or shows unusual annoyance at your inquiries.
Your requests for updated financial information are ignored.
The debtor places jumbo orders or requests a higher credit limit.
Despite the problems you are having, the debtor tries to coax you into providing a good credit report to another supplier.
You get word that the debtor’s credit rating has been downgraded.
Any one of these hints of trouble can be the handwriting on the wall. Two or more, and it’s time to crack down. Take a firm stand. Turn up the heat on your collection efforts with this debtor and make no more sales unless they are cash on delivery.

Employee of the Quarter
by Sheryl Tompakov, CPA
 

Our employee of the quarter is Mike Engleman. A 1974 Temple University graduate, Mike is an Associate Partner of the firm and is certified in the State of New Jersey and Commonwealth of Pennsylvania. He is a member of the American Institute of CPAs (including the tax division), New Jersey Society of CPAs, and Pennsylvania Institute of CPAs.

Mike has been serving the firm’s Delaware Valley clients since 1977. He has a diversified client base which includes law and medical practices, as well as real estate developers.

The business world is constantly changing, especially in the area of tax legislation. Mike handles complex tax matters and has earned the American Institute of CPAs’ Certificate of Achievement in Tax Planning and Advising for Closely Held Businesses. He has lectured on tax related topics before various groups. Mike chairs the firm’s individual income tax committee, keeping the staff abreast of important updates.

Active in the community, Mike is a member of several committees for charitable organizations. He has served on the sponsorship committee for the American Heart Association’s Annual Heart Walk. He also participates in the Cherry Hill Chamber of Commerce’s Mentor Program and is a volunteer Finance Management Counselor for the Rutgers University cooperative extension of Burlington County.

Outside the firm, Mike enjoys traveling, playing golf and tennis and can be found at the 600 level of Veterans Stadium on Sunday afternoons watching the Eagles. He resides in Voorhees with his wife Rita and stepson Bob.

Alloy Happenings
by Brad Sears
 

The firm is pleased to announce that it has changed its name to Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co.

Marvin D. Alloy, CPA, was named an honorary member of the American Institute of Certified Public Accountants for his 40 years of membership.

Dennis Vogt, CPA, began writing tax-related articles for the Midlantic Business Alliance’s quarterly newsletter.

George E. Barrett, CPA, lectured to Rutgers-Camden School of Business “Camp Business” students on accounting and finance topics.

Lectured to members of Commitment Community Church in Lindenwold, NJ on tax planning and preparation topics.

Anne D’Amico, CPA/PFS, and Lee Sheilds, CPA, received the National Multiple Sclerosis Society Leadership Award, presented by former 76ers president Pat Croce. The award honors local professionals who have made an outstanding contribution to the business, civic and cultural betterment of our region.

We are pleased to announce the addition of the following employees to the firm:

Arthur Birch, CPA, previously self-employed

Joseph Breig, J.D., CPA, previously self-employed

Ronald F. Kidd Jr., J.D., CPA, previously self-employed as an attorney

Richard Neff, CPA, transferred from a Philadelphia firm