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Tag Archives: Accounting
12 ways to get your invoices paid faster
- Discuss credit terms with your new client – set the expectation
- Change your credit terms to be less than they are right now – research has shown that invoices are paid 2 weeks late. So better to be paid late on short credit terms than late on long credit terms
- Get invoices out on time – be clear about what makes a service or product billable and bill it. Don’t be shy about billing promptly, the client has had the service\product, they need to pay for it
- Make it standout – clients processing lots of invoices may put it on the pile with the rest, but if it stands out then chances are that it will get paid faster
- Be able to report your aged debtors and then chase the late ones rigorously. Send a statement and call them – some people get so much email that it gets ignored
- Add late payment charges – you can always reverse them but it will generate a conversation where you can re-iterate your priority to be paid on time
- Get the entity right that you are invoicing – if it is called Jupiter Construction Limited, don’t put JC limited on the invoice
- Make it get to the right person – does it need to go to the budget holder or accounts payable or both
- Do you offer multiple payment methods – cheque, bank transfer, paypal, debit card, credit card – the more methods the more likely you will get paid faster.
- Review the average days to pay for your clients and target the late ones – don’t treat all clients the same
- Delegate your credit control – if you are running the business and delivering to clients you won’t focus on this and a part time resource can
- Send electronic invoices with Pay Now feature – Xero cloud accounting does this
david@graceaccountants.co.uk
5 Tips on how to choose an Accountant
A Google search will produce a list of hundreds to choose from, so how will know which one is right for you and your business?
According to SBA.Gov
An accountant can save you time and clear up much of the confusion you experience when it comes to managing your finances and taxes, but a trusted accountant can provide other benefits, too.
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Act as a Trusted Advisor – More than just a tax preparer, an accountant can become a trusted advisor to your small business, helping you manage cash flow, plan for growth, assess risk, and keep your books in order.
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Help Balance Business and Personal Needs – Many small businesses, particularly sole proprietors and startups, find that their business and personal finances are closely linked. A good accountant can help you make sound judgments beneficial to both.
Here are my top tips:
- Decide what services you need for example you might only need your accountant to prepare the year end accounts and tax returns and you might do the book keeping and payroll yourself? Or you might want help with Business Plans and raising finance?
- Ask about your accountants qualifications, CIMA Members in Practice are highly qualified, monitored by their Accounting Institute and carry appropriate levels of Professional Indemnity Insurance.
- Ask about their experience and knowledge of your type of business and industry sector, do they have references and testimonials?
- What if your accountant is sick or unable to do your work? do they have a continuity agreement in place with another accountant (all CIMA MiPs have these agreements)
- Ask about the fees and service levels, your accountant should provide you with a letter of engagement setting out what their fees are and the services they will provide.
Business Accountant 