It’s time to replace the Chaos with a little Christmas.
Even by Blighty’s standards, the last quarter has been a little bizarre to say the least. We’re on our third Prime Minister, utilities are still on the rise, inflation’s rocketing and it’s being matched by interest rates.
Now more than ever, the necessity of having cash in the bank has never been more important.
December can be a struggle in more ways than one.
Expenditure and wages are not the same in December. Add seasonal factors such as Xmas bonuses, parties, gifts etc and you’re suddenly spending more than expected.
Add to this that most businesses close for an extended period over Xmas and you’re faced with having to fund increased expenditure but within a decreased three-week working period.
The actions you take NOW become so much more important.
A renewed credit control focus is vitally important because the invoices you raise now will be your ‘Christmas Cash-Flow’!
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 all 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 any excuse for your invoice payment to be delayed.
2. List on the invoice the payment information that the customer will need 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 has been raised fairly, it’s expected 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 unpaid invoices, 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 2022.
Stay Safe Folks, let’s all try to have a happy festive period.
From all the team at Corp & Comm (01535) 65 45 94.