New year, new me… and new ledgers to complete. It’s a brand-new year and that means getting back into keeping on top of your credit control procedures. Finding and maintaining good credit control practices can be the difference between your business thriving or not.
Here are some business new years resolutions which you can implement into your business for better cash flow.
Invoice ASAP Invoicing as soon as the goods or service has been completed is important for prompt payment. Make sure all the invoice information is accurate. Automating invoices can help with this and save some time.
Look into your credit control procedure
Was your cash not flowing throughout the previous year? Perhaps now as we go into the new year it might be worth looking into your credit control process. It may be worth sitting down and looking at where you need to tighten up your credit control practices.
Maintaining contact with customers
Keeping that interaction going is important. Through emails and calls, you will be able to find out why the customer hasn’t paid yet or if there have been any issues on either side – you’d be surprised how many invoices have gone into someone’s junk folder! Maintaining contact will also help preserve customer relationships, something that’s become more important than ever.
Remember that everyone is just coming out of a hectic festive period (some may still be in the post-Christmas blues) so being gentle but still firm with your clients is the way to go. Some customers may be a little slow to respond to you right now but it’s about maintaining contact with your clients and following your credit control procedure.
Know when to stop!
Sometimes after all the chasing, emails sent, and phone calls made, and letters posted, a client may still not have paid what they owe. It’s important to know when to stop your credit control procedure and when to turn to a debt collection agency. Sometimes even the threat of contacting a debt collector is all it takes for people to pay.
The new year brings many small businesses a fresh start, new ideas, and updated business practices. Make sure to include credit control in your business resolutions in 2022.
If you need any help with getting control back into your credit control, give us a call at 01209 823118 or emails us at email@example.com.