Three ways to improve cashflow.

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Three ways to improve cashflow.

Firstly, you will need to

*   KNOW what your Debtors Day ratio is which measures how quickly cash is being collected from debtors.  (If you don’t know, but DO know what your annual fees are, click HERE or on the table above.)

REDUCE that ratio. (Businesses with lower debtor days tend to do better because their cash flow is stronger.)

THREE WAYS TO REDUCE DEBTOR DAYS.

ONE:  Take a completely fresh look at the Debtors Ledger.  This Blog Post explains how to categorise all accounts and how to deal with each category including wording to use in ‘reminders’.

TWO:  Outsource some or all collection work.  This small information site outlines the benefits, results and includes a comprehensive FAQ section. 

THREE:  Offer debtors the ability to “pay off” their invoice/s in monthly instalments.  If you are an accounting or legal firm, consider FeeSynergy. (They provide a professional fee funding facility that pays 100% of a clients fee to the creditor firm NOW and allows the client to pay the balance monthly at NO COST to the creditor firm! This is their website.

Any ONE of those three ways WILL

1:  Substantially reduce the balance in the Debtors Ledger and,
2:  Put more cash in the bank account.

Best results will be achieved by utilising all three.
By | 2019-12-04T01:49:26+00:00 November 12th, 2019|Uncategorized|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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