A key issue small businesses and start-ups face is having a healthy cash flow. Late payments stop businesses moving forward. We’ve looked at small ways you can make a big difference to your cash flow to find out if cash really is king.
Ideally, all invoices would be paid on presentation. However, in reality, it’s never quite as simple. Companies pay late and in unfortunate cases forget to pay at all. The challenge is to put in place a system for debt collection to ensure cash flow doesn’t become a problem.
Turnover is vanity
Your sales may be high and your profit may look positive but if you’re not collecting cash your business suffer. The longer a debt remains unpaid, the more difficult it is to collect.
It is important to remain on top of unpaid debts. It might even worth offering a small discount if payments are made earlier than required. Even if a lack of cash doesn’t stop your business, it will stop you investing and growing.
Automated debt collection
Chasing payments from clients are often perceived as an awkward experience. Perhaps you don’t want to upset your clients. Maybe they will think you’re ‘pushy’. But what can you do?
Automation with your bookkeeping software can eliminate the tedious requirement to chase these late payers. Xero can send invoices, offer different ways to pay and chase clients in a timely manner. You can set an automated timescale for sending invoices, reminders, and statements. All the ways to keep you with a healthy cash flow.
More than just accountants
We here at Kala Atkinson we have experience in helping small businesses with cash flow and invoicing. As your company grows, bookkeeping software becomes more important. If implemented correctly, the software will save time and keep you with a healthy cash flow. Get in touch today to find out how we can help. Alternatively, use our quote calculator to find out how much our services cost for a business like yours.