How Debtor days can impact your cash flow
Where are you now?The best place to start is understanding what your debtor days are currently then sit back and have a think about your cash flow situation, do you always have enough cash to make payments and wages on time?Calculating your debtor daysThe key things we need to know before we work out the debtordays are total sales for the month, closing debtor balance, how many days were in the month.So,…
Continue ReadingTechnology Saves the Day
Specialised appsThe App market place can be overwhelming. There are loads of options out there all promoting different features and functions. One app we have experienced great success with with CHASER, a UK based automated debtor management system. We really like the easy to read dash board and the consolidation of emails in the CRM maing it easy for anyone to pick up and know the status of a overdue…
Continue ReadingThe Art of Chasing Money
Tried and tested processFirst step is to confirm all debts are correct & confirm reason for non payment. Next, send the invoice with a personal note asking for payment or if there is any reason they haven’t paid, follow up after 2 days with a phone call.Schedule regular follow ups and find a mutually acceptable payment arrangement if the client can't pay up front. Ensure statements are sent promptly…
Continue ReadingPayment Terms Yours or Theirs?
Click here to watch the Video Blog on You TubeWhat does “on time” mean to you? Payment terms can vary from Cash on Delivery (COD), 7 days, 14 Days, 21 Days, 30 days, 45 Days. There a couple of things to consider when you’re working out what your payment terms should be; Are you completing a high volume of low dollar value one-off jobs?Are you providing project services and invoice at milestones?What…
Continue ReadingWhat is a Debtor and Common Pain Points
Click here to watch the video blog on You TubeA debtor is someone who owes you money for goods or services you have provided. Seems pretty simple, but there are many loopholes that can catch out small business owners. Below we have listed a few considerations; Did the client sign a quote or letter of engagement to confirm they wanted to proceed with the work you provided?Did you complete credit check…
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