Spend less time chasing late payments

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What would you do with another 15 days a year?

Did you think to yourself “collect overdue payments?” Probably not.  According to the December 2017 report titled “The Domino Effect: The Impact of Late Payments” that is exactly what US Small businesses are doing every year. The report found that a staggering one in ten invoices was paid after its due date, if paid at all.

Unlike their larger counterparts, small businesses are more susceptible to the effects of late payments, often creating unnecessary financial stress.   40% of survey respondents said they saw a direct negative impact of late payments. The disruption to cash flow and additional man power spent chasing late payments resulted in less reinvestment in the business, fewer raises and bonuses, and staff layoffs. 

If small business owners are to succeed they need to lessen time spent on administration and more on growing their business. Of equal importance is reducing the amount of accounts receivables they are being forced to write off as uncollectable debt. The way to achieve this is to automate. Available technologies allow small business to establish automatic invoicing, payments, notices, etc. Many accounting applications like Sage, QuickBooks, and Xero have automation features many small businesses aren’t utilizing. Hubdoc, Bill.com, and Expensify are other powerful tools at your disposal.

If the technology is daunting or your plate is already too full, contract a professional to set it up for you. The time and money spent upfront will result in improved cash flow and higher profits

What would you do with 15 days a year? Focus on your business? Spend it with family? Take a vacation?    

Read the entire report produced by Plum Consulting here.

 

#bookkeeping  #smallbusiness #nailyournumbers #15days #naileditbusinessservices  #automatedfinancialmanagement

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