With the summer holiday season upon us it is important for businesses to ensure their finances are in shape and to ramp up their credit control.
Reduced staff numbers during July and August can have a negative effect on business continuity. Your customers may not have made appropriate arrangements to cover for staff shortages in their accounts departments, resulting in them paying you later than normal. At the same time you may have less resources to chase payments.
We would recommend that you analyse your cashflow in the run-up to the summer, and take some simple practical steps that will help you manage your business finances during the holiday period:
- Ensure that you invoice promptly ahead of the summer break
- Email your invoices to prevent them “disappearing in the post”
- Write detailed descriptions on your invoices to avoid confusion and prevent delay
- Clearly outline your payment terms and method
- Don’t assume all customers will pay on time; plan for those you suspect may pay late
- Chase your debtors
Different plans work for different businesses and it’s important to be realistic. If you think you may need further advice on credit control or support in developing your cashflow, please contact Jackie or Andrew on 01625 524 127.