Tips for generating preChristmas cashflow
Consistent processes for recovering unpaid accounts and maintaining cashflow are important all year round, but become even more critical during the Christmas and New Year period. Having seen too many people and businesses suffer with cashflow issues over the Christmas and New Year break, Lynch Meyer Lawyers has put together some key tips to ensure that your cashflow stays on track this festive season.
Our top tips
1. Keep on top of invoicing – make sure you regularly invoice customers in accordance with your terms / credit agreements. Missing dates for invoicing can create longer delays (and headaches) when they fall overdue.
2. Make and keep an updated list of all outstanding and aged
3. Be consistent with notices or demands to customers – have a clear internal process for following up overdue accounts. This may be sending a reminder letter at seven days overdue, and then a phone call at 14 days overdue.
4. Engage with your customers and head contractors – it’s always best to keep lines of communication open with your customers and try to find out if there are any reasons for non-payment. This will assist you to work with the customer / head contractor towards a prompt resolution.
5. Review WIP – now is as good a time as any to reflect upon the year that’s been, and review your outstanding WIP to assess the impact COVID may have had on your turnover projections, future budgets and anticipated profit.
accounts – this will ensure that, heading into the silly season, you are on top of all of your problematic accounts.
11
