The following article is reprinted from the November/December 2017 edition of the Western Grower & Shipper magazine, published by Western Growers Association. For additional information on how accounts receivable aging reports can improve credit accuracy and business decisions, contact the Blue Book Services customer service team at customerservice@bluebookservices.com.
It’s a very simple concept, but it can have a huge impact on business decisions when executed properly. For more than 100 years, Blue Book Services, Inc. has been the leader in providing credit and marketing information for the fresh fruit and vegetable industry. By synthesizing financial and rating information, Blue Book Services has continuously provided credit data to all segments of the industry’s supply chain so that well informed business decisions can be made.
And now, they’ve come up with a better and faster mousetrap.
Jim Carr, president/CEO, explained the effort by Blue Book to give members real-time access to accounts receivable (A/R) aging reports. The new feature has some bells and whistles, but at its core any company that electronically submits its own A/R aging reports to the Blue Book credit team receives digital access to the aggregate report. Of course, creditor names and specific information are omitted, but these real-time electronic credit reports offer the most up-to-date information available.
A Win-Win for the Industry
Carr calls it a win-win for the industry, as it allows a selling or buying decision to be based on current financial information. He stands by Blue Book’s traditional meth-od of gathering information from thousands of businesses and said these regular submissions remain extremely valuable in creating an overall picture of any company’s financial health. There are literally thousands of companies in this industry and millions of transactions in almost any given time span.
Blue Book staff continually gather this information and use various measurements from the aggregate data to determine a company’s financial creditworthiness, rating, and pay trends. This system has worked well since the firm was founded in 1901 and continues to be the backbone of its business model.
In July 2016, Blue Book Services unveiled this new effort to literally harness the power of A/R aging reports to deliver an instant snapshot of how a company is currently performing. The feature is fully functional with contributor growth on the rise. “We have major grower-shippers and distributors from throughout the country participating and giving their colleagues the benefit of A/R aging reports,” added Carr.
The following article is reprinted from the November/December 2017 edition of the Western Grower & Shipper magazine, published by Western Growers Association. For additional information on how accounts receivable aging reports can improve credit accuracy and business decisions, contact the Blue Book Services customer service team at customerservice@bluebookservices.com.
It’s a very simple concept, but it can have a huge impact on business decisions when executed properly. For more than 100 years, Blue Book Services, Inc. has been the leader in providing credit and marketing information for the fresh fruit and vegetable industry. By synthesizing financial and rating information, Blue Book Services has continuously provided credit data to all segments of the industry’s supply chain so that well informed business decisions can be made.
And now, they’ve come up with a better and faster mousetrap.
Jim Carr, president/CEO, explained the effort by Blue Book to give members real-time access to accounts receivable (A/R) aging reports. The new feature has some bells and whistles, but at its core any company that electronically submits its own A/R aging reports to the Blue Book credit team receives digital access to the aggregate report. Of course, creditor names and specific information are omitted, but these real-time electronic credit reports offer the most up-to-date information available.
A Win-Win for the Industry
Carr calls it a win-win for the industry, as it allows a selling or buying decision to be based on current financial information. He stands by Blue Book’s traditional meth-od of gathering information from thousands of businesses and said these regular submissions remain extremely valuable in creating an overall picture of any company’s financial health. There are literally thousands of companies in this industry and millions of transactions in almost any given time span.
Blue Book staff continually gather this information and use various measurements from the aggregate data to determine a company’s financial creditworthiness, rating, and pay trends. This system has worked well since the firm was founded in 1901 and continues to be the backbone of its business model.
In July 2016, Blue Book Services unveiled this new effort to literally harness the power of A/R aging reports to deliver an instant snapshot of how a company is currently performing. The feature is fully functional with contributor growth on the rise. “We have major grower-shippers and distributors from throughout the country participating and giving their colleagues the benefit of A/R aging reports,” added Carr.
Blue Book typically receives these aging reports from participants on a monthly basis, at various times during the month, according to each firm’s accounting system. Usually they’re received on the first of the month, the fifteenth, or at the end of the month. In turn, Blue Book updates the aggregate data on a daily basis, and again, any firm that confidentially shares its information with the credit service gets access to the report.
Complementary Information
Carr reiterated that the report comes with no names affiliated with any specific debt to protect seller anonymity. He calls it another tool to improve credit decisions. “The ratings and financial information (in any Blue Book edition or from the online version) are very accurate, but it’s a rearview mirror look,” he said. “It basically tells you how the company performed in the preceding months. The A/R aging report can give you information on current trends.”
The Blue Book executive said it is a fair question to ask if a real time A/R aging report challenges a rating. “I don’t see it that way; they complement each other,” Carr said.
He explained that while a real-time aging report does give a great snapshot of what’s happening with a company in the short term, it doesn’t replace the careful consideration that goes into creating a longer view of a firm’s business practices and financial situation. Both are tools to gauge creditworthiness and both are accurate, even if they sometimes paint a different picture.
Participation Benefits All
The new A/R aging report program has garnered quick support from the industry. Linda Schroeder, credit manager for Church Brothers Farms, Salinas, CA, called the effort “an important additional tool we can utilize to make good credit decisions and also assign appropriate credit lines.” She urged others to participate in the program, noting that the addition of this data allows everyone in the credit field to make smarter decisions concerning a customer’s creditworthiness.
Another Salinas Valley firm, Coastline Family Farms, has also been participating in the program. “It gives an up-to-date picture of how a company is paying,” said Coastline accountant Kathy Hulette. “When a potential customer is applying for credit, it’s a great tool to use when making the decision on whether to take them on or not. You can also check on existing customers when their payment practices start to fluctuate.”
Salesman Jeff Walker of TC Marketing Inc., Napoleon, OH, commented on the ease of participation. “It takes me less than one minute, once a month, to fulfill our commitment to a better produce industry. Our hope is that more companies contribute so Blue Book can grow and enhance this valuable resource feature.”
From Nogales, AZ, Christopher Ciruli, chief operating officer of Ciruli Brothers LLC, summed up the new program and the importance of a robust credit system: “As a company, we have found Blue Book an invaluable resource to keep us up to date on trading member information and other relevant news that impact our business. We have relied on Blue Book for over 50 years and will continue to do so, on account of the information and insights Blue Book provides.”
