Content of the material
- Use it in emails to alert readers a message is over
- What does N 60 mean in accounting?
- Typical EOM sales mistakes
- 1. Sales reps don’t select the right prospects
- 2. Sales reps neglect proper timing
- 3. Salespeople start pushing too hard
- EOM accounting procedures
- Account for necessary financial adjustments
- Calculate account balances
- Make the end of month report
- What do credit terms 3/20 n 60 mean?
Use it in emails to alert readers a message is over
By Heinz Tschabitscher Heinz Tschabitscher Writer University of Vienna A former freelance contributor who has reviewed hundreds of email programs and services since 1997. lifewire’s editorial guidelines Updated on March 11, 2022
What does N 60 mean in accounting?
‘Net 60‘ (also ‘n/60‘) This means the invoice amount is payable in full within 60 days from invoice date (or after delivery of goods). It makes no statement on bill payment beyond 60 days — so the vendor may or may not have a late-payment penalty for the customer.
Typical EOM sales mistakes
Let’s consider some of the mistakes salespeople tend to make at the end of the month ― the ones that only lower their chances of closing more sales and hitting the quota:
1. Sales reps don’t select the right prospects
Being pressed for time, salespeople may resort to impulsive EOM selling. They may start pitching to everyone.
That’s a completely wrong approach. No matter how close your EOM goal is, remember you should contact only those prospects who are most likely to buy your product or service right away.
2. Sales reps neglect proper timing
You should be clever enough to align your EOM sales with the customer’s ability to pay. Most people get paid during the period between 25th and 30th every month. That’s usually the best time for them to spend money.
Try to tie your sales efforts with their perfect purchase timing. For example, you may make a discount and create the effect of urgency in your emails so that they won’t miss a chance to buy your solution.
3. Salespeople start pushing too hard
Approaching the EOM period, sales reps often forget the crucial sales rule: ‘In sales, you should listen more than speak.’ Don’t try to overdo it with words. Your prospects may count your expressiveness as a kind of pressure, which will only avert them from a purchase. Stick to your strategy of asking them critical questions, being empathetic and helpful.
EOM accounting procedures
Successful EOM accounting rests on three procedures your company should complete regularly:
Account for necessary financial adjustments
It’s a common practice for your company to collect revenue and deduct expenses. However, at the end of the month, the number of transactions may not coincide with the time when original transactions have been made.
For instance, the company has paid a salary to its employees of $25,000 in total via bank transfer. However, the bank has issued additional commission that month, which cost the business $5,500 of unexpected expenses. As a result, the accountant had to correct the original entry and report $30,500 as a total sum.
Calculate account balances
When all financial adjustments have been made, your accountant should calculate the balances of each account your business holds. In other words, at the beginning of each month, the accountant records the opening balance and then adds deposits and subtracts all expenditures.
Make the end of month report
Once the balance of each account is calculated, all numbers should be recorded into your business’s accounting database. Based on these entries, an accountant should prepare the necessary reports to highlight the current financial position of your company. These reports should be presented to the management.
What do credit terms 3/20 n 60 mean?
If a proper invoice is received after the 25th day of the month, payment is due on the 7th day of the second calendar month. 2/15 net 40 ROG – this means the buyer must pay within 40 days of receipt of goods, but will receive a 2% discount if paid in 15 days of the invoice date. (ROG is short for “Receipt of goods.”)