Aim: More money in the bank!
With the Christmas period fast approaching, it’s time to put some time in to chasing those unpaid debtors.
Traditionally, Christmas has been the worst time for NZ businesses to collect money from their clients – we all know that the country effectively shuts down from between 2 weeks to 6 weeks depending on how well you’ve collected debtors during the rest of the year – freeing you up for a longer holiday.
1) Have you got automatic reminders set on your invoices coming out of Xero? These have been proven to decrease your debtor days dramatically and better yet it’s all automated so done for you.
2) Get on the phone. The age ole, tried and true method to get money back in the bank. If you feel bad calling people (your debtors) for money, then consider outsourcing this process or getting a friend to do it for you, calling on behalf of your business.
3) Review your terms of trade. Too often we see people invoicing for work they’ve finished weeks ago and then giving customers 20 days to pay. Why not invoice 20/50% upfront? You set the terms, not your customer.
We love helping of our clients build a unique business and industry specific strategy to improve the collection of debtors and improve cash in the bank.
Feel free to book a time to have a chat with us at the following link: