Show me the money!
You’ve probably heard the saying “Turnover is vanity, profit is sanity but cashflow is reality”.
If this is true then surely a focus on collecting the cash owed from the people you have supplied services or goods to is on the top of your to do list? If not it really should be.
In reality it is probably one of the last things you actually get round to. Today’s world means you have to be in numerous places at once, completing numerous tasks at the same time. It’s no wonder you don’t get time to chase up that problem debtor!
So, below are three easy wins for you which can be implemented today and have an impact on your cashflow;
Everyone pays personal bills by direct debit these days. Why not apply the same logic to your business? Go Cardless is a great system which is easy to use, seamless to set up, guarantees payment and the costs are really low.
Do you include an exact due date on all of your invoices? If not, why not? It has been proven time and time again that people work best when given a deadline. Why not apply the same logic to getting your invoices paid?
System for chasing debtors
What is your system for chasing the money you’re owed? Do you have one? If not have you considered automating this process? The automation of chasing a debtor before it becomes due helps to;
- Remove administration from you
- Risk of a debtor going bad
- Any queries your customer may have on your invoice before it is overdue.
- So, why not get these in place now and start getting paid for the awesome work you have already provided.