Top Tips for effective cash flow management

Know your customers

Have you considered running credit checks on your current and potential customers? Credit checks will help you determine if your customers have a good track record of paying their bills and also if they are credit worthy. When creating new customers within your accounting software set credit levels against your customers. This will produce an automatic flag that will show at the time of creating an invoice if the customer is over the credit limit set against them.

Be clear on your T’s & C’s

If you have set your businesses settlement terms at 7 days or 30 days be sure to communicate this with your customers so that both parties are clear on where they stand. Use your aged debtors report to identify any outstanding debt owed by your customer. Also monitor any recurring problems in getting paid on time.More...