info@remaccounting.com.au
  • (03) 8797 5399
  • Recent News – REM Accounting
    • Home
    • Our Difference
    • Services
      • Accounting & Tax
      • Self-Managed Superannuation Funds
      • Business Advisory
      • CFO Advisory
    • Resources
      • Recent News
      • Useful Links
    • Contact Us

    Ensuring your invoices are paid on time

    By admin • 29 April 2019 • Money

    Having a healthy supply of cash is vital for the survival of small businesses, as it is required to operate and enables you to pay workers, rent and other expenses. Unpaid invoices can lead to poor cash flow, a significant reason small businesses fail.

    Late invoice payments can add to the strain of being restricted by limited resources. As a business owner, you should take the necessary steps to ensure prompt invoice payments and reduce your stress.

    Structure:
    A structured collection process when it comes to chasing payments can provide a strong foundation to minimising losses as your business grows and can release thousands of dollars into your cash flow as a result of faster payments. By embedding certain practices into your day-to-day operations, the time dedicated to invoicing and chasing late payments is more efficient and effective.

    Prompt invoicing:
    Fast and correct invoicing is a great way to encourage faster payment. The earlier that you send your invoice will mean the client can make payments as soon as possible. Contacting clients after sending your bill allows issues to be addressed quickly. Checking if they have received your invoice and are happy with the services that have been provided is a good way to improve customer relationships.

    Know your customer:
    Staying up-to-date with changes within your industry can help a business to stay relevant and gain insights into customers. This awareness can help you to identify whether clients are experiencing a trading decline or financial stress, giving you the chance to take proactive steps before it can affect your cash flow. If flexibility is needed, agree on a payment schedule then confirm dates and amounts in writing. Keep in mind that your priority is the success and survival of your own business.

    As your business grows, you should consider ways of creating a system that streamlines processes and improves cash flow in your business. If you require further assistance, consider consulting your financial advisor.

    Tweet
    0
    Accounting during every stage of business
    Increase to fuel tax credit rates

    About the Author

    admin

    You Might Also Like

    • Do these things on every payday

      Do these 3 things on every payday

    • What do long term and short term financing involve

      What do long-term and short-term financing involve?

    • Are reverse mortgages right for you Pros and Cons

      Are reverse mortgages right for you: Pros and Cons

    • What you need to know about debt consolidation

      What you need to know about debt consolidation

    No Comments

      Leave a Reply Cancel Reply

      You must be logged in to post a comment.

      Recent Posts

      • Do these 3 things on every payday
      • What you can do to reduce public speaking anxiety in the workplace
      • How you can improve your business’ LinkedIn presence
      • Investing for your SMSF
      • Improve your company’s shipping by following these steps

      Archives

      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018

      Categories

      • Business
      • Legal
      • Money
      • People
      • Super
      • Tax
      • Web

      RECENT COMMENTS

        Subscribe & Follow

        Subscribe to our newsletter and keep up to date with the latest news from REM Accounting & Advisory

        REM accounting logo
        • Accounting & Tax
        • Self-Managed Superannuation Funds
        • Business Advisory
        • CFO Advisory

        Association LogoAssociation Logo
        Copyright © 2018 REM Accounting and Advisory | Privacy Policy

        Liability limited by a scheme approved under Professional Standards Legislation