When starting your own business, it’s easy to believe that you can stay on-top of every task but that is not always the case. Staying ahead of your finances can become difficult as your business begins to take off, but your ability to manage your money is a reflection of well you can manage your business. To prove that you are a stable business it is important to know how to manage your company’s finances effectively.

Accurate accounting

As a business owner, it is your responsibility to understand what is going on with your money. Where are you spending it and who is avoiding making payments. Ensure that you have received all of your account statements and take the time to look at your transactions, is everything accounted for? Doing this lets you anticipate any shortfalls in income and gives you time to prepare.

Late payers

You should have a detailed payment policy, if you don’t then it’s time to create one. This outlines the procedures associated with payments and the collections process with your customers. When it comes to late payers, you may want to make it clear from the outset what your expectations are. Clearly state “Payment is expected on receipt of invoice”, and make it obvious what your payment terms are. You are well within your rights to charge interest on late payments, make it clear to a client with an overdue account that you will begin to add interest if payment is not received. If you are in a position to, you can also offer a payment plan to the client too. The main aim is to get the client paying; anything you can do to encourage this will benefit your business.

Outsourcing

If you have done as much as you can and the client is refusing to make a payment or isn’t willing to enter into a payment plan, then it may be worth considering using a collection agency. An agency will have a lot more experience dealing with difficult clients; they understand debt collection and are aware of the legal implications. Using an agency can free up your time to deal with other tasks and other clients.

At Commercial Domestic Investigations, our highly-trained team work tirelessly to recover any debt owed to you. We keep up-to-date with debt collection laws and industry best practice, meaning that we can work professionally and effectively. If you want to find out how we can help you, contact our team on 08444 159200, use our contact form or email sales@commercialdomesticinvestigations.co.uk.