Posts Tagged "invoices"

Tips On Managing Your Business Finances

Posted by on Aug 23, 2017 in Blog

Tips On Managing Your Business Finances

Being in charge of your own business can be an exhilarating time in your life, and undoubtedly you have worked long and hard to get to the point where you are today. Poor money management and limited cash flow is a real issue with many startups, and your finances can ultimately make or break your business. Without a steady supply of money coming in and a small amount of savings set aside for emergencies, you are at risk of losing all that you have worked for. Make your finances a priority It is important that you set time aside to go over your finances on a regular basis. Stop procrastinating! They are a necessity, and your business cannot run without them. Do not keep putting them off. You need to schedule a day and a time to balance your accounts, enter your invoices and receipts, and check that all is running as it should be. If it is up to date, then you will find that you don’t have to spend as much time on it at all. Invest in quality software Gone are the days of pencils and ledgers. Today’s financials are maintained by quality accounting software stored...

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The Importance Of Your Payment Terms

Posted by on Aug 2, 2017 in Blog

The Importance Of Your Payment Terms

Payment terms seem such a small thing in the scheme of your business, but the reality is it couldn’t be further from the truth. Your payment terms affect your cash flow and enable you to balance the books and meet your debts. You must set your customer terms with their specific needs in minds. Just because some businesses offer 60-day terms, doesn’t mean that you have to as well. Each business is different and each has their unique set of issues which affect cash flow on a daily, weekly or monthly basis. You control your cash flow Many small businesses underestimate the power they have on their cash flow. With more and more companies paying their bills later and later, the only option many small businesses have is offering 7 or 14-day payment terms. If you offer 30-days, then businesses can in all likelihood take advantage of your time-frame and extend it even further. Sometimes challenging the norms to benefit your business is the best thing to do. 30-day terms were more popular when organisations sent their invoices by mail; as times have changed, so can the obsolete business terms. 7 to 14-day terms are more popular than you...

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Avoid Cash Flow Dramas Over Christmas

Posted by on Dec 9, 2015 in Blog

Avoid Cash Flow Dramas Over Christmas

With the exception of retail-based industries, many businesses experience a slow period during the Christmas season. Cash collections are disrupted as businesses and staff leave to take a break. Most schedule special trips out of town during this season or use this period to otherwise slow down and relax. The problem for many small businesses is that this disruption often affects the normal payment cycle, pushing cash collections as far out as February of the next year, or even longer. This delay in payment can leave many small businesses struggling to survive. If you really can’t wait the extra days and weeks to get paid, try these tips to improve your cash flow during Christmas. Stay on Top of Your Invoices Send your invoices out automatically, as soon as the work for your client is complete. Ideally, you invoice clients early enough so that they have time to pay before they leave for their holiday break. Consider offering a small discount for early payment. You might also want to consider being proactive and asking clients for at least partial payment upfront before the work is completed. This will provide you with at least part of your funds before your...

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3 Tips for Making Your Clients Pay Your Invoices Faster

Posted by on Oct 15, 2014 in Blog

3 Tips for Making Your Clients Pay Your Invoices Faster

If your customers are constantly failing to pay your invoices or starting to bargain about the price after you have provided them with your services, you have two options – to start using a collection agency yourself or to read the 3 quick and easy tips below and start receiving your money on time. Tip 1 – Make Your Customers Aware of Your Payment Terms In order to have a steady cash flow, you will need to have very solid terms and conditions, especially when it comes to payments. In them, you need to explicitly state when the payments are due and what the consequences of not paying on time are, e.g. price rise, no further business relationship, etc. Once you have your payment terms established, make sure your customers know them too. Send them a copy when they order, and another copy with the electronic invoice or on the back of the invoice, and of course mention them when you first start doing business with them. All this will make it harder for your customers to become debtors – if they know that they are late, they will at least feel slightly guilty about it. Tip 2 – Have Efficient...

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Are Your Invoices Correct?

Posted by on Mar 26, 2014 in Blog

Are Your Invoices Correct?

If you are planning to start, or have already started a new business, you will want everything to be in order – especially from a financial point of view. One of the most common mistakes that many business owners make (even those who have been in the business for quite a long time) is sending out incorrect invoices. At first, this does not sound too serious – you can always reissue a new one, right? However, the matter is not that simple and a wrong invoice may have serious consequences for your business, including interruption of the cash flow and financial losses. When it comes to invoices, there are some things you need to know in order to get them right. First of all, you need to distinguish between the two types of invoices:  a ‘tax invoice’ and a ‘general invoice’. The first one is issued by businesses registered for Goods and Services Tax (GST) and the second one is for non-registered GST businesses. Once you know this, you only need to include the information mentioned below and your invoices will be correct. No matter whether you are issuing a general invoice or a tax invoice (and don’t forget to distinguish...

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