Many times, small business owners are uncomfortable about asking to be paid, yet the top way to improve your cashflow is by invoicing PROMPTLY! When you run a business, (especially service businesses) if you don’t invoice promptly as well as collect payment promptly (which causes a cash crisis in the first place), then consider the following –
Consequences for your cashflow:
- Clients can quickly forget what they owe you;
- They are less likely to remember how much they loved your work and pay you promptly;
- They may conclude that you do not expect quick payment and will take their time in sending in their money.
Some ACTION solutions:
- Where possible, issue invoices at the time services are delivered;
- Send your invoice by email to speed the process;
- If you can’t issue immediately, be sure to issue your invoices weekly, or at least twice per month on designated days, such as on the 15th and the last day of each month;
- Do it like clockwork – it will help to even out your cashflow.
Take-away message –
Create the habit – invoice quickly and often.
Part of our service is assistance with cashflow budgets, debtor collection and reviewing supplier costs and terms.
One of our clients said the business finance is now in the BEST shape it has ever been – for our 4-5 hrs work weekly involves managing the invoices, payment follow up unique method and now supplier payments! The owner now can catch up on quoting jobs and finalizing the sale to grow the business.
Could this assist you in your business and let you focus on your best skills and on running the business? If you would like to speak with these clients, email me and I’ll supply contact details!
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Email firstname.lastname@example.org or call 0407 361 596 Australia