Collect your debtors faster
Did you know that you still have to pay tax on your debtors, even if you haven’t yet collected them?
This is because you pay tax on your sales figures, whether you’ve collected the cash or not.
So, how do you collect your debtors faster?
- 1Agree your payment terms at the time of sale
- 2Ensure your customer signs your Terms of Trade before you start the job
- 3Include a guarantee in your payment terms
- 4Invoice as quickly as you can
- 5Ask for a deposit prior to starting the job
- 6Change your payment terms to within 7 days of invoice or on delivery
- 7Send statements religiously at the start of the month
- 8Have someone other than the owner be responsible for collection of debtors
- 9Document any changes to your standard payment terms in writing
- 10Use an integrated payment gateway app
- 11Don’t provide credit to customers who’ve been late payers in the past, and don’t offer more credit to customers with outstanding payments
Don’t procrastinate on your debtors. Establish clear payment terms and ensure you stick to them.
Need help finding an integrated payment gateway app to suit your business? We can help. Get in touch!
“It’s the squeaky wheel that gets the oil.” – Anon