As the signs increase that we may be entering into an economic downturn it is time for businesses, especially smaller firms to tighten up on collections. As accountants, we refer to this part of your business as the Sales cycle and it is an essential part of your cash flow management to keep this tidy as sales and collections are a critical component of your working capital.

Some simple steps to keep your sales cycle on track are:

1. Contract: ensure you have an approved quotation or terms of engagement covering the service or product you are offering and how and when you expect to be paid.
2. Invoicing: send out invoices regularly and immediately after the service, whilst it is fresh in your client's mind.  
3. Follow-up: set up regular follow-ups and once an invoice goes into your "overdue" area contact the client directly ASAP to resolve.
4. Action: respond to any invoice queries quickly and pragmatically, the older the debt, the harder it is to collect, it literally goes stale.

Ideally, this should all be automated in your business, if it is not please contact your Primarius team leader or email us at info@primarius.net.au to get your business up to speed with an electronic and fully or partially automated sales cycle system.

Read a recent update from Creditor Watch with some of the signs in our economy - click here

Disclaimer: This information is general in nature. So, before acting on this or any other information, it is important to seek professional advice related directly to you and your circumstances before making any software or other changes.  Should you require our assistance, contact your Primarius Team leader, or email us at info@primarius.net.au