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Improve your cash flow: quicker payment, less pressure

‘Cash is King’ but it can also present a challenge for many businesses, particularly small businesses and those just starting out.

If your cash flow is under pressure, chances are so will most other aspects of your business be. This includes your negotiating and buying power and your ability to pay bills and fulfil any short-term liabilities. When this is the case, you may find yourself spending valuable time worrying about your financial position as opposed to running your business.

The pursuit of prompt payment to improve cash flow

In some respects, improving your cash flow can be easier than you perhaps anticipate. Simply by pursuing prompt payment from your clients and customers, you can completely change your financial outlook.

There are plethora of easy-to-use applications, software packages and online platforms available to business-owners today. As a result, getting paid faster has never been easier.

Online accounting software provider, Xero, have found that by engaging with online payment services, such as PayPal and Stripe, invoices are generally paid quicker. On average, in the UK, invoices are paid around 19 days quicker in comparison with other standard invoices.[1]

For customers, the ease of paying online can often encourage them to make that payment that they otherwise might not have remembered. This can only be a good thing for you; prompt payment means you can utilise the money within your business sooner.

Improve cash flow > improve your customer service

Taking steps to improve cash flow will certainly benefit you, but it may benefit your customers too.

We live in a world where online shopping and moving money with a single click are second nature.  Surely, it would be silly not to take advantage of this fact when it comes to invoicing.

For your customers, online payment gateways and the ability to use their credit card not only makes it easier for them to pay, in some instances, but also gives them better control of their own cash flow by deferring the impact of making a payment until they come to pay off their credit card.

For you, payment services can mean quicker payment as well as less time and less resources wasted on chasing debtors.

Faster payments for you + flexibility for your client = a match made in cash flow heaven.

Concerned about cost?

There are costs, associated with using payment services, that could be avoided by using standard invoicing. However, the costs are nearly always offset by the benefits.

Besides this, set up is often free meaning you only incur fees for successful transactions facilitated by the service. So, if your customer chooses not to pay in this way, it doesn’t cost you anything.

Surely, it’s got to be worth a go?

Want to know more?

Here at George Hay we can help you to take control of your cash flow and drive your business forward. We will work diligently with you to put a realistic plan together that will cultivate confidence within your business and ultimately facilitate growth.

We also support a range of online accounting and bookkeeping software packages meaning we can take care of your cloud accounting needs and we even have a number of certified Xero advisers amongst our team.

Our team can provide you with as much, or as little, input as you require; from initial set-up and training to incorporating the latest software into your usual accounts routine.

Contact us today to discuss your requirements in more detail with one of our experts.

If you’re interested in finding out more about how you can begin to improve cash flow, you can read the article we wrote, for Biggleswade Today, on how to get your finances in order, here.

[1] https://www.xero.com/blog/2018/01/improve-cash-flow-small-business-clients/

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