Cash Flow at Christmas – not all Ho-Ho-Ho!
Christmas is now upon us, the festive displays are up in the shops, the adverts are coming thick and fast and the first lot of office Christmas parties are already happening. While it is the season of good cheer, it is also the season of high stress for a lot of business owners. The invoices […]
Christmas is now upon us, the festive displays are up in the shops, the adverts are coming thick and fast and the first lot of office Christmas parties are already happening.
While it is the season of good cheer, it is also the season of high stress for a lot of business owners.
The invoices raised in October would have fallen due throughout November and the monies raised form these are what will be your Christmas cash flow.
December is not a normal month; it can be a notoriously expensive and difficult one. There can be additional costs for wages and bills, Christmas bonuses and staff parties, gifts to clients and staff.
This all means outgoings are higher than usual, but the amount of working days available is reduced. Most companies close for a period of time over the holidays and so expenses are high while productivity is low. This can all spell worrying times for business.
Ensuring that your invoices are paid on time in the run up to Christmas is crucial and there are things you can do to minimise late payments.
• Ensure that your invoices are correct. This sounds obvious, but errors on invoices delay payments. Ensure that your customer’s details are correct and that the description of goods or services is accurate. Make sure that the date is correct, and price quoted has been correctly recorded. If there are minor errors then the customer can, and probably will, query the invoice and ask for any corrections to be made. This costs you time and also leads to a delay in payment while the issue is resolved.
• Make it as easy as possible for the customer to pay you. As well as having your payment terms clearly visible on the invoice make sure you are offering them an easy way to pay by including all of your payment options. Make sure all bank details are correct and state the date for payment.
• Be proactive! If an invoice is overdue, action it immediately. Most businesses will only be open for three weeks during December, so it is vital to follow up on any outstanding invoices as quickly as possible, it is only fair to be paid for work done.
If you are struggling to effectively implement a plan to manage your payments, or you don’t know where to start, then working in partnership with a reputable agency can bring stability and control to this area of your business.
Using a collection agency to manage your credit control systems means time and resources freed up within the business to concentrate on growing and expanding your offer. If you would like to find out more about how a company like Daniels Silverman can help to support you, the please do get in touch, we’d be happy to talk. We can explain how our expertly trained and ethical staff can work alongside you as part of your team to relieve the burden of chasing up late payments.
We’re family owned, friendly, professional and approachable. We have a great track record of successfully collecting invoices for our clients and are interested in building lasting relationships with them.
Visit the website to talk to one of our friendly team via Web chat or call the office directly to speak in person to us, we’d be happy to learn about your business and see how we can help you have a less stressful New Year.