Peter Richardson, founder at AIM GB, goes a step further: “I regularly remind clients to check the company they are dealing with, before they agree a contract run credit checks, search Companies House for directors and check if the directors have had other companies that have been dissolved.” Nicola Jones from My Accountant Online says: “I often tell clients one of the best ways to get paid quickly is to always make sure you agree your terms with a client or customer first and then to issue an invoice without delay.” Once you’ve agreed to provide a product or service, it’s important to also establish your payment terms. Indeed, with many businesses facing financial uncertainty, having a robust method for invoicing and for managing unpaid invoices is crucial, and this is a process that should begin as soon as you start working with a client. It is the everyday bookkeeping duties of raising and sending sales invoices to customers, posting the purchase invoices, accounting for cash expenses, posting bank payments, recording customer and supplier payments, and bank reconciliations that will make the difference.” “The key to this is good bookkeeping aided by good bookkeeping software. This has been a particular issue for many businesses in the past few months as companies attempt to manage the challenges associated with coronavirus.Īs Nicola Holden, director at accountancy firm Holden Associates, explains: “Monitoring the cash flow within a business is always important and that is especially true in the current climate. However, there will be times when, for various reasons, invoices go unpaid for longer periods than expected.
Keeping on top of cash flow and ensuring invoices are paid in a timely manner is essential if a business is going to survive and thrive.
0 kommentar(er)
