Small business owners often tell us that getting their invoices paid on time is a challenge.
For obvious reasons, having good ‘cashflow’ is essential to being able to stay in business!
Whether it’s paying you, your staff or your suppliers, cashflow is king.
Here are some amazing (and shocking!) stats on this subject for you:
is the average amount of money owed to small businesses
of invoices are paid after their due date
of UK Small Businesses are Cash Flow Positive each month
annual insolvencies are due to late payments
of business owners said late payments impacted their mental health
Source: Xero Study 2019 & FSB 2019
So, what’s the solution?
We don’t generally get involved with chasing your customers bills. We do know some great tools that can help you get paid more quickly, however.
If you need some extra support, we have some great network contacts who will be able to help you.
If you use ‘cloud’ accounting technology such as Xero, it’s possible to send an invoice with a ‘pay now’ button. Customers can then sort their payments through the app on a one off, or regular basis.
With new changes coming it is possible for the app to save a customer’s card details to take recurring subscriptions, again streamlining the processing.
Using a payment solution saw businesses get paid up to 21 days faster, according to Xero’s latest research.
Even if you do not want to offer card or direct debit payments, just being on top of sending statements at regular intervals can improve your cashflow.
Cloud accounting software can do this manually, and there are more apps that can plug into them and do an even more customised, automated, better job at this.
If you would like a review or health check of your own process, please get in touch with the team – we’d love to help you get paid quicker.