• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Shuriken Consulting

beyond the numbers

  • Pay your Bill
  • Tax Calculator
  • Contact Us
  • About
    • Privacy
  • Webinars
    • ATO Targets Cash Business
  • Services
    • Setup
    • Company Setup
    • Education
    • Finance
    • Insurance
    • Compliance
    • Bookkeeping
    • Tax and Accounting
    • Cloud Accounting
    • SMSF
    • Growth
    • Advice
    • Business Structure
    • Business Valuations
    • Wealth Team
  • Digital
  • International
  • Locations
    • Sydney CBD
    • Hornsby
    • Dural
    • Manly

Andrew Jeffers CEO / August 11, 2017

Chasing Your Debts… The Right Way

Not a fun topic, I know…

But if you find yourself in this situation every month, chances are you need to change something.

Never knowing when you’ll get paid can be exhausting!

Not to mention how disruptive can it be for your business. The more money enters your business the better your cash flow. So how can you ensure a steady flow of cash?

Let’s talk about a few things you can sort out in order to stop chasing your clients for their debts each month.

1. When do you send your invoices to clients?

Most of the time, people forget to send out their invoices on time. As a consequence, the process of getting paid is delayed.

Let’s say you have a plumber coming over to your place on a Monday. They don’t give you the invoice then and there, but you receive it two weeks later. Are you inclined to pay it?

Tip: A delayed invoice consequently means a delayed pay.

[ctt template=”7″ link=”BeLOd” via=”no” ]Tip: A delayed invoice consequently means a delayed pay.[/ctt]

Make it easy for your clients to pay you by sending the invoice right there, on the spot.

You might also be interested in: The Benefits Of Business Planning

2. Create a follow-up system for delayed payments

If you have a follow-up system in place, you won’t have to do the actual chasing. The chasing will happen automatically. Brilliant, right?

Here are a few suggestions that can help you start your follow-up system right now:

Get your invoices out early (very important!)

  • After 14 days, send out an update in the form of an e-mail, reminding your client how much money they owe you
  • After 30 days make a phone call
  • After 40 days send them another e-mail
  • After 50 days send a letter of demand

Having a follow-up system in place to consistently remind your clients how much they owe you can be useful in case you take the issue to court. You will have evidence proving you’ve made a considerable effort to remind this person they owe you money.

Tip: Reminders are a key factor to efficiently recover your debt.

The truth is, people usually forget to pay you. There are genuine people out there who just have a hard time managing their business properly. Sending them reminders usually solves the issue.

Bonus Tip: You can automatically send out your reminders to all the people who owe you money with programs like Xero, Saasu and MYOB.

You might also be interested in: 5 Accounting Software That Are Probably Perfect For Your Business

3. Eventually, you can take matters into court

What happens if a client still doesn’t pay you, even after you’ve sent them countless reminders?

  • You can send them a letter of demand
  • Make a liquidated damages claim at your local court

Contact your lawyer for more information about these two legal actions available to you.

Identify the reason for your debts. If you can easily solve your issues with an organised follow-up system, that’s an easy fix.

Sometimes, sending out a few reminders will solve your debt issue. Now you know how to chase your debts… the right way.

I can help you find some efficient ways to organise your invoice system and your business’ finances. You will be surprised how a little organisation can get your business on the right track. Let’s get in touch below.

contact-shuriken-today

Filed Under: Andrew Jeffers, Business Tagged With: 2 minute accountant, debts

Primary Sidebar

Recent Posts

  • August 2021 Tax And Accounting News: All You Need To Know
  • Exclusive Probians Offer
  • Tax & Accounting Questions Answered Free for Probians
  • Government support for your business
  • Succession Planning for Small Businesses

B1G1

“Imagine if every time you made a step forward in your business, it had an unimaginable impact on the lives of others…”

Footer

Services

  • Company Setup
  • Education
  • Finance
  • Insurance
  • Bookkeeping
  • Tax and Accounting
  • Cloud Accounting
  • SMSF
  • Advice
  • Business Structure
  • Wealth Management
  • Business Valuations
  • Digital Marketing
  • Shuriken International
  • Events

About

Shuriken is at the forefront of accountancy, providing clients with a broad range of services, coaching and mentoring.

Contact Shuriken if you want to launch or grow a business or if you want to get a clear action plan on how to achieve your financial goals. We can help with benchmarking, cashflow forecasting, payroll and much more.

Learn More

NSW Business Chamber Member

Contact Us

Sydney CBD

T: 1300 886 066 or (02) 9114 8544

Hornsby

T: (02) 9485 3400

Dural

T: (02) 9651 2288

Endorsal

  • News
  • Events
  • FAQs
  • Contact Us
Terms of Use Privacy Policy Disclaimer