In business it can sometimes seem like everyone has their own ideas about how you should run your affairs – and while they are no doubt mostly well-meaning, in the end it is your own responsibility to decide who to listen to.
That being said, we are experts at managing cash flow, from new client background checks, to ongoing credit control, to debt recovery and debtor tracing – so here is some of our own best advice about cash flow.
First of all, stop thinking about the financial side of your business as being separate from the rest of your work – it’s not. Without getting paid for it, the work you do is a waste of time and effort.
Because of that, you also shouldn’t think of invoicing as being a waste of time in itself, or something to be left for later.
The fact is, where cash flow is concerned, time is of the essence, and the sooner you invoice for work done, the sooner you will get paid.
This is the real trick to keeping your cash flow looking as healthy as possible – instead of leaving invoicing until after 5pm, or until the weekend or month-end, send invoices as soon as it is reasonable to do so.
By doing so, you start the clock ticking on when the client must pay you by – meaning even if they only pay you on deadline day, that date will still be sooner than it would have been otherwise.
The more engaged you are with your cash flow, the more engaged your customers will be with paying you, so regularly check the payments received into your account, send polite reminders as deadlines approach, and take prompt action if a payment is not received on time.
Beyond this general advice, there are a couple more things you can do to protect your interests from the beginning of the process to the end.
First of all, consider background credit checks on new clients, so you know how much they can be trusted to pay you – if at all.
And if a debtor disappears with your money, don’t give up hope, as our tracing service can often relocate them in order for you to take legal action to recover what you are owed.
Last of all, if you still don’t feel as though you have the time it takes to properly manage your credit control, you can outsource the entire process to us.
By doing so, you get a white-label service with your own dedicated telephone number for clients to make payments and enquiries – sending out a very professional image that will keep your customers more respectful of your payment terms.