April 27th and we’re still lighting the fire !!!! Who’d have thought ? I think we’ve all been taken by surprise by the cold snap that we’ve had for the last few days – most unseasonal. There’s been hailstones, sleet and even snow falling – just when we thought we’d be looking for the sunscreen. Just a tad unpredictable, I think.
But then, isn’t life nearly always unpredictable. To quote one of my favourite authors, Robert Crais, “Man Plans,God Laughs”. And how true that is. We may think we know what’s coming down the tracks but we don’t really know at all. And it’s the same in business. The best laid business plans will nearly always deviate from the expected path. Sales Forecasts, Budgets, Cash Flow Plans etc are essential in any well run business but you have to anticipate that you won’t always get the results that you anticipate. Cash Flow is one area where it can be notoriously difficult to accurately forecast. There are so many variables to consider such as Sales Volume, Bad Debts, Unforeseen Expenditure etc but the main feature of your Cash Flow Forecast is money received from your customers for the goods and/or services that you provide. If your customers all pay you on time and in full, you’re well on the way to keeping your Cash Flow positive. However, as we all know, that’s easier said than done but one tool that you can employ to help you is Effective Credit Control. Having an Effective Credit Control procedure in place is essential to maximise the return from your debtors and maintain positive Cash Flow. The main advantages of having an Effective Credit Control procedure in place are :
- Positive Cash Flow
- Keeping Bank Interest Charges to a minimum
- Ensuring continuity of supply by enabling you to pay your own suppliers on time
- Ensuring that you can pay wages and salaries
- Ensuring that your VAT and PAYE/PRSI are paid on time and so avoid fines and penalties
It seems like a no-brainer but you’d be surprised at the number of Small Businesses and Sole Traders who, for a whole variety of reasons have a huge difficulty asking for the money that’s owed to them.Don’t let this be the reason that your business fails. If you’re having a problem asking for money, let Credit Control Confidential help. Drop us an e-mail to firstname.lastname@example.org, check out our website – http://www.creditcontrolconfidential.com or give us a call on 00353 86 3589842.