Celebrating Get Out Of The Doghouse Day!
It's the third Monday of July ...
POSTED BY ROGER EDDOWES ON 16/07/2018 @ 8:00AM
Being in the doghouse is associated with being in trouble with your spouse, significant other or a friend, but it could just as easily be a business associate, client or supplier ...
Things don’t always go well, so Get Out Of The Doghouse Day is about making up with people!
copyright: carpetner / 123rf stock photo (licensee)
Often relationships suffer when cash flow gets tough. I have recently had a couple of clients who have been totally open with me about their struggles to pay their accountancy bill and we have worked with them to figure out a suitable payment plan.
"This takes into account their exact circumstances and when they will have available funds!"
So, my tip for the week is to talk to your suppliers about payment terms and, at the same time, put in place plans to improve your cashflow. Us accountants keep going on about the importance of cash flow, but if you pay your own bills on time it will help you get out of that dog house.
Here are a few obvious pointers:
Carry out credit checks on new customers. If they look like they have no credit rating will they actually have the ability to pay you at all? You don't want to bust your guts out in this hot weather for nothing!
Obtain payment for goods or services upfront, for example to at least cover your costs so you could pay your supplier on delivery.
Look at your financing. This can take various forms from the traditional bank overdraft/loan to financing invoices. You will be surprised by what institutions will lend for, for example:
Your tax bill due at the end of this month
Your VAT bill for the June quarter
A new piece of equipment
Recruitment fees for a new employee
Keep communicating with customers to remind them that they have debts to settle. It may be that they have just simply forgotten or not even got your bank details!
If you need an introduction to a finance broker who can look at this for you then do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you on this year's Get Out Of The Doghouse Day!
Until next time ...
If you're looking to work with a leading firm of accountants, then why not visit our website which you can find at www.essendonaccounts.co.uk and let's see how we can help you!
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves ‘getting his hands dirty’, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.