The year is coming to an end and business owners are letting out a collective sigh of relief – ready for a well-earned break to recharge the batteries. However, one cannot forget about the lifeblood of the business over the festive season – Cash Flow!
Here is what can happen without careful planning and implementation of a few key strategies:
The business incurs extra expenses paying out on holiday pay, leave loading, client gifts and Christmas parties. Additionally, less money is flowing in because key sectors of the economy – construction companies, banks, professional services – have shut down.
Businesses dealing with consumers find that throughout January and February people aren’t paying accounts because they’ve overspent at Christmas and often need to pay school fees for the New Year.
The result is often a rush of collapses in the first quarter. Insolvency figures tend to drop in January as the markets and professional services go on holidays but peak in March when it’s back to business.
What can a business do to combat this?
- Pay attention to your Accounts Receivable now and get the money in before the end of the year.
- Ensure the resources are in place to get statements and invoices out on time.
- Be pro-active about contacting accounts that have fallen overdue.
Amanda Lee, Director of Amanda Lee & Co, a business specialising is the collection of overdue accounts, says “it is the case in every industry that you need to ensure as many debtors as possible pay before Christmas as history tells us that in the New Year many businesses and individuals struggle to meet financial commitments because of additional expenses incurred over the holiday period”.
Ms Lee suggests that the business must ensure they have enough cash flow to survive until mid-February which is usually the time that debtors will commence drip feeding payments again. “In the current financial climate we could see a longer period before the cash flow cycle starts flowing again. This could become a real killer for many businesses if not properly managed” says Ms Lee.
Amanda Lee & Co team are on your side.
We are highly experienced professionals who specialises in turning difficult payers into highly profitable clients who pay on time.
In over 5 years of successful operations, Amanda Lee & Co has collected 98.5% of all overdue accounts and helped numerous businesses to avoid potentially destructive confrontation with delinquent accounts.
Our hourly rates are so effective that most businesses delegate all of their Overdue Accounts Receivable to us and benefit from the confidence of knowing that it is finally under control.
Amanda Lee & Co is more successful than traditional debt collectors, more cost effective than other finance options.
Give us a call on 0413 487 416 to arrange an appointment so we can ensure your cash flow is optimised before the New Year.