Have you prepared for the other ‘C’ word
Whisper it quietly but it’s time to replace the ‘C word’ with something a little more festive.
Yes, we’re in the midst of the second lock-down but things seem a little different this time around. People are simply getting on with things, whether it’s because there’s the thought of a vaccine on the cards, or the fact that Christmas is around the corner, who knows but it certainly appears to be business as usual.
This renewed business focus is vitally important because the monies you recover now will be your ‘Christmas Cash-Flow’!
December is notoriously a troublesome and expensive month.
Bills and wages are not the same as in ‘normal months. Add seasonal factors such as Xmas bonuses, gifts etc and all too quickly your expenditure is higher than usual.
Couple this with the fact that most businesses close for a period over the holidays and you’re suddenly faced with the perfect storm of having to fund an increased four-week expenditure period whilst perhaps only having a three-week working period to raise revenue.
The actions you take now become so much more important.
As we all know, there is no cast iron way of guaranteeing that an invoice won’t be paid late but there are ways that you can minimise that risk.
1. Make sure that your invoice holds the correct written information.
- List the customer’s information correctly. Make sure any description of goods/services provided is accurate. Ensure the price is as quoted and the invoice is dated correctly. Don’t provide an excuse for the invoice to be delayed.
2. List on the invoice the payment information the customer needs to pay you.
- Make sure your complete bank details are on your invoices : bank name, account name, sort code and account number. Include your payment terms and most importantly, the date for payment. Without a place to pay, people can’t pay.
3. In December, have a ledger to hand to see what invoices are owed…. and action it !
- In most cases businesses will only be trading for three weeks in Dec. Be proactive with your ledger, don’t delay when an invoice is overdue. If the invoice is fair, it deserves to be paid. Don’t be scared to ask for your money, you’ve earned it and you certainly deserve it.
If you don’t have a plan to action your debtors, or you struggle to implement your processes, then don’t delay, use your peer support network and contact us for all the help, advice and guidance you’ll need to enjoy a stress free end to 2020.
Stay Safe Folks, have a good one.
From all the team at Corp & Comm (01535) 65 45 94.