Getting paid on time – are you bothered?

Mon, 09/21/2020 - 09:20 | billie@innov8gd.com

Business owners can use this free resource

Avoid three common mistakes – take actions that could make a big business difference

Getting paid on time – are you bothered?Cash (and good cashflow!) is king and not getting it in on time is both a worry and a distraction. There are many reasons why cashflow can be a hassle of course. 

'The Small Business Commissioner' is a government department there to practically help business owners. Contact details for the Commissioner are at the end of this article.

 

Here are three mistakes that are common and possible to rectify with consistent steps.

 

Major mistake – Not having Terms and Conditions with clients/customers that are clear about payment terms

If these are not clear then your cashflow and time management suffer. 

  • ACTION  - Agree in writing Terms and Conditions that are tailored to your context with your client or customer. Always read and challenge anything that a client gives you that looks “standard” and has wording that is not to the advantage of your business. Check out our finance workshops if you want to improve your finances.
  • ACTION  - Include wording that is clear about your statutory rights to claim interest and compensation if you are paid later than agreed.

Common mistake – Not invoicing clearly, promptly, accurately

When we start work with clients we always help them to get their invoicing right. Sometimes they have been reluctant to “pester” clients. Sometimes they have not made time to have a good invoicing system – and without this clients can think “I am off the hook of paying”! We don’t know many clients who ask “Hey, where is your invoice I would love to pay right away”

  • ACTION  - Have invoice templates that are easy to use and that you use straight after work has been done.
  • ACTION  - If you don’t already then have software that makes this process easy, reliable and at low hassle to you. If you want to know more about software that is right for you – talk to us.

It’s an easy to do mistake – Not prioritizing chasing payments systematically

  • ACTION – Put time blocked out in your diary to chase payments, pick up the phone, check that all the information is accurate and make sure it is going to the right person who really organises payment.
  • ACTION – Involve your bookkeeper in chasing payments, maybe over the phone - a fresh voice with a good clear assertive “script” can make all the difference when a client hears the reminder.

 

SIMPLE ACTION – free advice

Have a look at this website, www.smallbusinesscommissioner.gov.uk it is full of useful information for getting paid or challenging those who are not paying on time.

or 

send in a complaint about a business you supply if you have not been paid and it is something the SBC will investigate: complaints@smallbusinesscommissioner.gov.uk

 

Want to improve your business finances every month? Expert help is here!

The Real Business Club gets alongside business owners and their staff, help to take the fear and pain out of bookkeeping, accountancy and tax issues and release owners to do what they want to do.

Contact Dawn on 07896 665104 or email dawn@therealbusinessclub.co.uk – Dawn leads our team delivering common sense clever finance services to businesses.

 

For your business to grow – need some expert help?

Contact Isabel if you want to achieve more, feel better and improve what you do and get to a clear way forward: Contact her on 07759 074864 or email isabel@therealbusinessclub.co.uk