CASH FLOW MANAGEMENT

In this newsletter we present the final part of our series on cash flow management.  If you have enjoyed these articles and would like them to become a regular feature of thise newsletter, or have ideas for other useful articles, please This e-mail address is being protected from spambots. You need JavaScript enabled to view it us with your feedback.

How to manage debtors and increase cash flow at the same time:

Make it easy for customers to pay:  Invoices that are easy to pay get paid faster. Offering your customers access to a range of payment options such as BPAY, credit card and direct debit by phone and internet can be accessed 24 hours a day, seven days a week making it easier for bills to be paid.  And provide invoices on time. It’s courteous and good business.

Monitor your accounts receivables on an ongoing basis:  Having a solid process in place to track accounts receivable is vital. This includes monitoring invoices as they head towards the end of the standard 30 day payment term. A polite reminder should be made immediately after the 30 day term and then ramp up the pressure as the delays increase.

Stop credit extension on overdue accounts:  Although it is tough to do, particularly if you deal with big business, you must stop extending credit to customers with overdue accounts. If you've done the work or supplied the goods, you're entitled to be paid according to your payment terms and conditions.