May 30, 2015
Be Proactive When It Involves Your Corporate Accounts
If you can anticipate problems before they actually occur and put plans in motion that will help you to work through the challenge, your company will remain competitive and financially sound no matter what the issue. When it comes to your business accounts it’s always wise to be proactive and to have a Plan B in case your initial plan doesn’t work as you expected it to.
Questions to Ask
As you begin to think about what issues could impact the cashflow for your business, you may want to ask some of the following questions:
Are your clients paying on time each month?
Have you examined their payment history to uncover any financial issues that they may be experiencing themselves?
How do you plan to pay your bills if your company has a disaster or suffers a large, unexpected loss?
Do you have a Plan B in place to help you through challenging financial times?
By considering each of these questions you can effectively plan for the unexpected times that money may not be flowing positively into your company.
It’s worth checking out source such as ultimatefinance.co.uk for ideas regarding alternative plans that can help you when you experience a cashflow shortage. You will keep your doors open for business and your staff and bills paid until you can find the source of your cashflow problems and incorporate a viable solution.
Changes to Make
When you study your invoicing procedure you may find that there are some major changes that need to be made. You must make them immediately and inform your clients of any modifications made to invoicing procedures. Bring their attention to any new incentives or discounts that you may be offering for early payment of invoices; this can bring the much-needed money into your accounts so that you can honour your financial obligations and remain in good standing in the business community. If you need to adjust the dates for billing cycles, let your clients know why you’ve made the changes and when you expect them to pay for goods and services rendered. Once you see that a client has a history of late payments, contact them to discuss the issues that you and they may be having. You can share information with them about companies that provide cashflow assistance and how they could benefit from using this type of arrangement until they, too, can learn what they are doing wrong with their payment and collection systems.
In order to be successful, you must pay close attention to your business operations and how they are working for you so that you can make changes when they are needed. You can develop an alternative plan of action to use should you experience a financial shortfall and then work to fix the problems that you have uncovered in your study of your business plans.
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