Most of us small business owners dread this time of year as we know January is coming. It is the worst month regarding cash flow for many of us due to
December being a short month for sales/invoicing and the dreaded tax bills being due in January.
Here are a few jobs you can do now and implement throughout December to help get ahead of the game before January arrives.
Invoicing – This may sound like an obvious one but many of us are still leaving invoicing to the end of each month even though it is the most important job. In December it is imperitive to invoice your customers for works completed on a weekly if not daily basis. This is good practice all year round where feasible but is especially useful in the lead up to the Christmas break.
Discounts – You could offer an incentive to customers for early settlement of your invoices. Perhaps a 2% discount if payment is made within 7 days of invoice date. This may not be suitable all year round but could be useful during December and in to January.
Pick up the phone – In this digital age I am still surprised by the number of business owners who do not like picking up the phone – everything seems to be done via email. Whilst email is a fast and efficient way of liaising with your customers it can be very impersonal. Why not pick up the phone and talk to your customers this month – wish them a Happy Christmas and speak to them about invoice payment, maybe remind them of any discounts for fast payment you are implementing for the month. People are always more inclined to stick to their word if you have spoken to them personally, you can always follow up with an email to confirm any payment dates and amounts agreed.
If you would like any assistance with improving your business cash flow then get in touch today. Email us at firstname.lastname@example.org.