Reduce the stress of late payment
The late payment of invoices is causing owners and directors of SMEs stress-related problems, a survey by the International Association of Book-keepers (IAB) has found, but there are ways you can increase your chances of getting paid.
The IAB, the leading professional body for bookkeepers, surveyed more than 200 of its members and found that over half (50.7%) said they had noticed late payments causing cash flow problems for their clients in the past year.
Chief Executive of the IAB, Malcolm Trotter, said: “Among the examples of problems caused, our members cited their clients’ inability to pay their own bills on time, increased use of credit cards for short term finance, having to arrange expensive overdrafts and directors and business owners not drawing a salary.”
“But perhaps most worryingly, some of our members reported clients suffering from anxiety and depression as a result of the cash flow pressures brought to bear on their businesses through late payments.”
If you’re finding the strain of late payment difficult there are things you can do to streamline your credit control procedures and get back what you’re owed.
By clearly setting out a day-by-day strategy from the moment the order is placed until the invoice is paid, your accounts receivables team can adopt co-ordinated and professional credit control procedures that could reduce the threat of late payment.
See our handy timeline below showing how a structured approach could help your business get paid more promptly.