How to Collect Upward of $100K at Year-End
Posted Sep 15, 2022 in Management
How would you like to end the year with a $100,000 “cash advance”? That’s what Mike Farago of Concord Dental Laboratory did in 2021 after having more than 20 clients make prepayments for 2022.
For several years, one of Farago’s clients had been prepaying a portion of the following year’s laboratory bill in order to reduce his tax burden. In 2017, Farago extended that option to all clients and has gotten $80,000 to $100,000 worth of prepayments nearly every year since (with the exception of 2020, no surprise).
“Prepayment is appealing to clients who may be looking at a hefty tax bill and need to spend some of their surplus. The amount is up to them; some will just prepay what they estimate their January lab bill will be and others pay a bigger lump sum and start the year off with a significant credit on their account,” says Farago, CEO of the Westford, MA, laboratory. “At the end of last year, for example,...