Archive for the ‘Credit Control’ Category

Managing Credit Control And Recovering Bad Debts

Thursday, April 25th, 2013

When you are doing everything in your business, you’ll appreciate that there are only 24 hours in a day. And if people are giving you the run around ‘I’ll pay you later’, ‘yes i’ve been meaning to get round to it’… and then in some cases ignoring you altogether, it can drive you round the bend!

Get in a bookkeeper, and make part of their routine include some credit control – chasing up outstanding debtors, sending our statements, addressing any issues or queries that are stopping people from making a payment. This will solve some of your problems, because a bookkeeper is a neutral person. Sometimes a client needs to deal with someone else in your organisation, not you. Boogles Ltd don’t even have to come to your office to do the credit control for you. If we have an aged debtors list – we can do some of that chasing from our offices / off site.

£30,000

You’d be amazed, that with one client, withint he space of about 2 weeks, just with a gentle nudge and reminder letters and emails, £30,000 of cash came in after an afternoon of credit control. IT IS ABSOLUTELY WORTH IT.

90 DAYS

HOWEVER, one needs to put a time limit to this. If after 90 days the money has failed to materialise, and no payment plan is in place, then its time to call in the Debt Collector / Recovery agent.

Specialists like this are experienced and trained to get your money out of people. Listen to the recorded interview we did with Clayton Coke of PRMS Ltd talking about ethical debt recovery and how to manage bad debts. You Tube link: http://youtu.be/nWSfjgnLnZo

Accept Card Payments From Customers

Monday, April 15th, 2013

Cashflow is king. These days, if the cash isn’t flowing quite like it used to, help yourself and your customers… get a credit card reader, so that you can take payments on the go… easily, without any fuss. Better still, unlike traditional mobile terminals, instead of paying every month for a machine – this one, you just pay when you use it!

See below.

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Sign up here, and get your reader now: http://bit.ly/15hTOG6

Are your customers paying you on time?

Monday, July 11th, 2011

In the news today the Federation of Small Businesses says that late payments are still a big problem for small businesses. 56% of small businesses said that they had written off invoices worth between £1 and £9,000 because of non payment, of those small firms that had been paid late in the year the FSB said that 77% had been hit by late payments from other companies. That is a staggering amount and such a waste of money. In the current economic climate every penny counts and for small businesses a late payment can mean not being able to pay employees.

In 2008 around 4000 businesses collapsed because of late payments, don’t be one of those businesses that fail when this problem can be so easily rectified. You need a credit controller, or a bookkeeper who can do a little bit of your credit control for you.
Don’t let bad accounting disrupt your cash flow, use your company’s time and resources on something more productive than on chasing payments!

A PACK OF CARDS – IF THEY COLLAPSE, WOULD THEY BE TAKING YOU UNDER WITH THEM?

Monday, February 7th, 2011

Is it any wonder that the country is in a state? Here’s my theory – there’s a lot of insolvent companies out there, who are continuing to trade (which is illegal), but they do it anyway. Figures compiled by RBS / Natwest found that one in five SMEs (Small & Medium Sized enterprises) are being owed an average of £50,000 – £100,000 a month in LATE PAYMENTS !!! This is astronomical.

But worryingly,  it’s not the worst part. The worst part, is that R3 (an insolvency practioners trade body), showed that 27% of corporate insolvencies were triggered by another company’s collapse.

Let this sink in for a moment and ask yourself – Do you really know who you’re doing business with? Look at your debtors ledger – look at your aged debtors list… and look at who owes you money. And then look at how long that money has been outstanding. And then think about what else you could be doing with that money.

If you are owed £100,000 by one company and that company went under – what would that mean for your business? And this is what it’s about in 2011.  Credit control and cashflow management.

 

The reason why a lot of small businesses suffer, is because they don’t have a bookkeeper / a credit controller who’ll ensure that things are chased or not ‘allowed’ to get out of hand. When a company is going down – there are signs. There might be a large order out of the blue, bounced cheques, or lies and deceit. They swear blind they’ve not received your invoice – or there was something wrong with the invoice. Get it sorted out.

 

If you’re busy running your business, and getting IN the business and delivering the business – we understand… but you could get in a Boogle (a bookkeeper), for just half a day e.g. £100 and collect in e.g. ’£50,000’ – a better use of your resources, then stressing yourself out to collect in a few quid from the hand which is still feeding you (supposedly). Trust me – you’ll feel better when you outsource this job because it’ll leave you free to focus on your business and fee-paying customers … which is always more fun and better for your mental health!

 

If you are closely tied up in your business, what you may find (annoyingly), is that when you go to speak to a client (which you don’t really want to speak to), they quickly change the subject and jump in about some other job they need you to do, or how some aspect of whatever isn’t quite right… and you’re left in a difficult situation – one being, you don’t really want to be having anything to do with them – until they’ve settled the bill.

 

We know. We understand.

 

 

Disputes Over Money

Wednesday, April 14th, 2010

It’s disheartening, when you do a great job for someone, (and have been doing work for them for over a year), and then ‘all of a sudden’ you realise that they’re built up quite a big debt with you…. so then you politely ask them to make a payment, and suddenly they’re not quite as friendly anymore.

This is a situation facing a client we saw. The dispute is for about 25% of the entire debt. Thus, of the £12,000 balance, their client only wants to pay £9,000. But you see, the £3,000 could be where all the profit for that company is. What do you do?

Tips:

1. Try and resolve it as quickly and as amicably as possible

2. Use a mediator if that helps, but don’t get emotional about it OR ignore it.

3. Invoice regularly, and (preferably) get paid for each part of the job.

If you are self-employed … it can be difficult to ask for your money… Especially if you work quite closely with your client, and you are doing the work (hands-on) yourself. If you are focused on your work and you’d like someone separately to be focused on your books, then it might be worth getting a part time bookkeeper to do the ‘dirty’ work for you…

Boogles… we love the job you hate ! 🙂