Improving Your Cash Flow
Improving Your Cash Flow
In April 2012 the forum for Private business (FPB) http://www.fpb.org published its report on how late payments impact UK SMEs. 51% of businesses surveyed have had problems with late payments and 1 in 5 of those have said that it nearly put them out of business.
A regular flow of cash is essential to the smooth day-to-day running of a business – particularly a smaller one. The vast majority of small firms simply do not have the reserves to allow them to wait for payment of what they are owed without a severe impact on their bottom line.
The statistics on late payment are frightening:
- 861,000 firms – that's half of all UK SMEs – experienced late payments in 2011
- Poor payment practice costs UK businesses £20bn every year
- Late payments to small businesses reached an all-time high of £33.6 billion in 2011
- Small firms are each owed an average of £39,000 at any one time
- 1 in 4 businesses go insolvent due to invoices being paid late
- 158 million man hours lost to chasing overdue bills last year.
Credit control systems are essential to support the sales process, although the accounts staff maybe stuck in their office typing away seemingly doing very little, the role can if managed well, increase cash-flow and improve business relationships together with retaining clients because of fair and open communicate with regard to settling invoices. This allows the business to make timely investment decisions and improve profitability as less chance of debts turning bad. (The ones that do will also be for a reduced amount)
Prohire software has the facility to raise regular and sundry invoices together with the batch emailing feature so that your accounts staff can spend more time engaging with clients to resolve account balances. The added benefit of this feature is the cost savings in other resources as paper, envelopes, stamps and the time used to process these items are reduced.
See below for a quick demonstration of Batch Emailing in action:
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