Here at Chromium Bookkeeping, we like to listen to our clients and help them with their accounting dilemmas. We are often asked how our clients can improve their cash flow so we have put our heads together to create this article giving you top tips for improving your cash flow.
- Invoice Immediately - don’t wait until the end of the month or weeks later. As soon as the work is done get that invoice out to the client and chances are your client will pay sooner.
- Send Invoices By Email – same as we said in the last point, the sooner your client gets the invoice the sooner they will pay it. This then speeds up the process by a few days meaning you get paid quicker. It also means you have a copy of what you have sent, in case the client claims they haven’t received it.
- Write Detailed Descriptions on Invoices – Make sure clients understand the invoices when they get them, leave no room for confusion as this will prolong their payment if they query it. Make sure there is no way they will not understand what you have charged them for.
- Set Payment Terms – but don’t just set any old payment terms, set payment terms that suit your business and will work for you and your clients.
- Encourage Bank Payments – write on your invoices how you would like to be paid, give clients all the details they need to pay the money directly into your bank account as this is much quicker than them sending cheques or bringing in cash.
- Have Someone Else Chase Money – Chasing money is never a nice task and is often a chore that business owners put off so why not outsource this task to someone else and get them to do the nasty bits of business?
As a small business owner life will be a lot less stressful if your customers and clients pay faster so follow these top tips and see how you get on!
We want to help you make a success of your business.