KEEPING A TIGHT GRIP ON YOUR DEBTORS

Published 4 November 2022
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With any business it is imperative that you keep on top of your debtors and know what is outstanding to make sure that your business runs smoothly and efficiently.
 
If you are struggling for cash flow and money isn’t coming in as quickly as you would like it’s time to act.  Make sure your debtors list is up to date and you know exactly who owes you money.  Have a plan of action to contact each client who owes you money.   Keeping a positive relationship with your clients will ensure that you can resolve any problems that may arise and will help you to collect the money that is owed.  Failure to have a full list of your debtors and not contacting them to pay could have serious consequences for the future of your business and put strain on you personally.
 
If clients are genuinely having a problem in settling their invoices, agree payment terms with them.  Make sure you follow up when money is promised to you at a certain time and has not come in.
 
Think about whether you can put your clients on a direct debit / standing order system so that money comes into you when its due.  Keep lines of communication open with your clients so that you get an understanding of what is likely to come in helping you to plan your cashflow.
 
Organising and managing your debtors is an essential part of your business and is the key to keeping things going.   If you have any concerns about your cashflow and debtors, please contact one of our team at Mayes and we will be able to offer support and advice.


Tel:  01254 300050
Email:  info@mayesaccountants.co.uk

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