FOUR TIPS IN MANAGING YOUR CASH FLOW
Bookkeeping Fairy Perth
Accounts Payable, Cashflow, Acconts Receivable
Cash flow is the movement of money and in and out of your business. Most businesses cash flow problems stem from providing credit to their customers. Here are four tips that you can easily implement to save yourself sleepless nights.
1. Be clear about your terms
Many new businesses in their rush to engage new clients don’t create proper application forms and obtain credit references. The most important reason in having an application form is that they have to sign that they have read your terms and understand them.
2. Commit to contacting business with overdue invoices
Calling clients for unpaid bills does mean that getting out of your comfort zone to seek overdue payments. Be pleasant and firm and just check that they have the correct bank account number and the date the account is to be paid.
3. Be consistent with following up on unpaid accounts
Make sure you ring clients the day after the payment is due and do it every time. Clients that know you will be calling them will be more inclined to pay on the due date. Make a diary entry on the date they have committed to pay and follow up exactly if they haven’t. Make notes on what was discussed and set a recontact date and time if they don’t pay.
4. Stay focused
If it helps, write a telephone script and practice asking for an overdue payment. Make sure that you take control of the conversation and focus on when they will be able to pay you and work towards that commitment. Make sure that you have all your details about the overdue invoice, be firm but assertive in asking for a payment date.
, Accounts Payable