Glasgow Business . 35
www.glasgowchamberofcommerce.com PAID FIVE WAYS OF GETTING PAID QUICKER
» Send out your invoices as soon as possible – your customer has no obligation to pay until they receive the invoice » Make sure you itemise every part of the bill – if the customer does not understand the invoice then they will delay paying it » Make it clear when you expect payment – don’t allow for any confusion
also has other benefits, such as making your balance sheet stronger as it mitigates the risk of bad debt. Tis can, in turn, help to make geting finance through traditional overdraſts, factoring or invoice discounting more available.
Using technology
Accountancy soſtware from the likes of Sage, Accpac, Pegasus and Quick-books is available to track your cash flow and payments, and there are free apps to download and low-cost online tools that can make managing and forecasting your business finances a lot easier. For example, Simply Cashflow is
a cloud-based online tool that allows you to track cash flow on a daily, weekly, and monthly forecast. Alan McCafferty, Chief Executive of Simply Cashflow, said it is a good way to identify any ‘pinch points’ or future issues with your cash flow. He said: “It’s a good way to
forecast the affect of the big hits, like salaries and VAT payments, to your cash flow during the month, and its
» More invoices for smaller amounts: avoid hitting your customer with one, huge invoice – a customer is more likely to sit on a bill that is overwhelmingly large » “It’s not business, it’s personal”: make friends with your customer’s accounts team – the occasional thanks for an early payment will make them remember you next time and give your invoice top priority.
‘what if’ functionality is very useful for assessing the potential effect on cash flow through winning new business or expanding the business in the future.”
How to tackle an overdue account » Plan the call: what you want to say, your legal imperative, and when you want action » Keep your conversation businesslike – it’s not personal » Anticipate your customer’s excuses for late payment and how you can counter these » Record what has been agreed regarding payment and the milestones and email this to the customer for their confirmation » Reinforce your message with action – even the potential for court action. Although court action might be expensive and lengthy, you have to consider the reputational damage to your company if you become known as an organisation that will not pursue outstanding debts.
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