Blog
- Forecasts projections and budgets 18-04-2016
- Some lessons from NZ in the 1792 - 1840 06-04-2016
- Nature the great game changer 22-02-2016
- TPPA 10-02-2016
- Tourism is creating some interesting businesses 26-01-2016
- Digital prospecting for clients is an increasingly crowded space 12-01-2016
- A slow giant is still a giant! 06-01-2016
- Housing affordability is no news 01-01-2016
- Bad budgets are like a blunt knife 25-08-2015
- What are accountants thinking 14-08-2015
- Where are the customers yachts? 26-03-2015
- I was not misled: I simply was wrong - Warren Buffet 03-03-2015
- Being Wrong - holiday reading 07-01-2015
- Top performance takes intention and followup 27-11-2014
- Credibility trumps skill 11-08-2014
- If you don't sell a terrible thing happens..... 16-07-2014
- This sat me on my heels for a minute 08-05-2014
- Financial instability 19-04-2014
- Medical insurance 13-03-2014
- A good day out 25-02-2014
- Car buying 24-01-2014
- Employment needs a new model 21-11-2013
- Doing nothing much well is critical 19-11-2013
- Small change in terms big change in profit 29-10-2013
- The yacht race is a great business metaphor 26-09-2013
- Tax rules are difficult 20-07-2013
- How much soldiering on is good 01-07-2013
- Counter intuitive behaviours needed to win 16-05-2013
- Is your business adapting 05-04-2013
- Time it marches on 19-02-2013
- Accountants are good for business 27-11-2012
- Actually NZ is better than you think 19-10-2012
- BYOD - a current business trend 19-09-2012
- Supply and Demand 28-08-2012
- Administration the invisible force 08-08-2012
- Fees for monthly payments 15-07-2012
- The new hourly rate 25-05-2012
- Beijing 20-04-2012
- Electronic tools 03-04-2012
- China 2012 v 2005 16-03-2012
- Year end 02-03-2012
- The taxman cometh 17-02-2012
- Trust 13-01-2012
- Holidays 09-01-2012
- Rationale behaviour creates undesirable results 09-12-2011
- Accounting skills are most valuable in tough times 02-12-2011
- On-line advertising 28-11-2011
- Social Welfare with a hard edge 10-11-2011
- Entitlement and fairness 03-11-2011
- Technology opportunities 28-10-2011
- Distractions aplenty 28-10-2011
- Exchange rate management 23-09-2011
- Holidays are good 15-09-2011
- Giving it away? 15-09-2011
- Penny and Hooper 26-08-2011
- A perfect size 05-08-2011
- Is it time to buy that offshore business? 29-07-2011
- Value 23-07-2011
- Capital Gains Tax myths 08-07-2011
- The cost of monthly payments 15-06-2011
- Cars their Colour and FBT 06-06-2011
- And they're ready 26-05-2011
- What if Australia needs an extra 500,000 staff 13-05-2011
- Lean Accounting 08-05-2011
- Common themes for most businesses in NZ at the moment 11-04-2011
- Funding Development Projects 22-03-2011
- How good are your financial processes? 22-02-2011
- When did you last think about your structure? 22-02-2011
- Key business issues to think about at the moment 22-02-2011
Common themes for most businesses in NZ at the moment 11-04-2011
Part of the reason money is tight is that people are not paying their bills or are delaying payment. Too often the slow payment is after getting a very sharp price (sometimes at cost).
Collecting cash can be quite a tight rope walk where a business has to balance its desire to keeping working for a customer against the immediate need to pay its bills. Also, there are few people who truly enjoy the confrontation of asking for money.
Having had responsiblity for a number of debtors ledgers (ranging from a few dollars from a small business owner to millions from equipment suppliers) my top two tips are:
- Give all customers a service call within a week of their bill being overdue. You are simply using the overdue bill to alert you to a potential problem with the job you did. If there is a problem get it fixed quickly. Otherwise sound out when the money will arrive.
- Ring the biggest debtors three days after the invoice goes out. Check everything is in order and that they have everything they need to pay the bill.
Whether these are pushy or helpful is all about how you frame it to your customer. "Hi, just checking you were happy with the work we did" will win friends. Angry or aggressive won't.
Of course ultimately collecting money relies on some really important things being done right before the person ever owes you money. If you have not had good professional advice around your Terms Of Trade, credit approval and invoicing processes now would be a good time to do it.
Blog
- Forecasts projections and budgets 18-04-2016
- Some lessons from NZ in the 1792 - 1840 06-04-2016
- Nature the great game changer 22-02-2016
- TPPA 10-02-2016
- Tourism is creating some interesting businesses 26-01-2016
- Digital prospecting for clients is an increasingly crowded space 12-01-2016
- A slow giant is still a giant! 06-01-2016
- Housing affordability is no news 01-01-2016
- Bad budgets are like a blunt knife 25-08-2015
- What are accountants thinking 14-08-2015
- Where are the customers yachts? 26-03-2015
- I was not misled: I simply was wrong - Warren Buffet 03-03-2015
- Being Wrong - holiday reading 07-01-2015
- Top performance takes intention and followup 27-11-2014
- Credibility trumps skill 11-08-2014
- If you don't sell a terrible thing happens..... 16-07-2014
- This sat me on my heels for a minute 08-05-2014
- Financial instability 19-04-2014
- Medical insurance 13-03-2014
- A good day out 25-02-2014
- Car buying 24-01-2014
- Employment needs a new model 21-11-2013
- Doing nothing much well is critical 19-11-2013
- Small change in terms big change in profit 29-10-2013
- The yacht race is a great business metaphor 26-09-2013
- Tax rules are difficult 20-07-2013
- How much soldiering on is good 01-07-2013
- Counter intuitive behaviours needed to win 16-05-2013
- Is your business adapting 05-04-2013
- Time it marches on 19-02-2013
- Accountants are good for business 27-11-2012
- Actually NZ is better than you think 19-10-2012
- BYOD - a current business trend 19-09-2012
- Supply and Demand 28-08-2012
- Administration the invisible force 08-08-2012
- Fees for monthly payments 15-07-2012
- The new hourly rate 25-05-2012
- Beijing 20-04-2012
- Electronic tools 03-04-2012
- China 2012 v 2005 16-03-2012
- Year end 02-03-2012
- The taxman cometh 17-02-2012
- Trust 13-01-2012
- Holidays 09-01-2012
- Rationale behaviour creates undesirable results 09-12-2011
- Accounting skills are most valuable in tough times 02-12-2011
- On-line advertising 28-11-2011
- Social Welfare with a hard edge 10-11-2011
- Entitlement and fairness 03-11-2011
- Technology opportunities 28-10-2011
- Distractions aplenty 28-10-2011
- Exchange rate management 23-09-2011
- Holidays are good 15-09-2011
- Giving it away? 15-09-2011
- Penny and Hooper 26-08-2011
- A perfect size 05-08-2011
- Is it time to buy that offshore business? 29-07-2011
- Value 23-07-2011
- Capital Gains Tax myths 08-07-2011
- The cost of monthly payments 15-06-2011
- Cars their Colour and FBT 06-06-2011
- And they're ready 26-05-2011
- What if Australia needs an extra 500,000 staff 13-05-2011
- Lean Accounting 08-05-2011
- Common themes for most businesses in NZ at the moment 11-04-2011
- Funding Development Projects 22-03-2011
- How good are your financial processes? 22-02-2011
- When did you last think about your structure? 22-02-2011
- Key business issues to think about at the moment 22-02-2011