Your small business depends on good cash flow. When not enough cash comes in, you can’t pay your expenses (like rent, utilities, supplies, etc.), cover your payroll, or purchase materials to provide your products and services. Your small business could be making a profit, but also experiencing financial problems, if you’re not managing your cash flow properly. A good bookkeeper, like Grace Walker of The Payroll Department, can help you stay on top of your cash flow, so your small business can succeed.
How a Bookkeeper Can Help You Get Paid
As a small business owner, your day is typically spent on customer-oriented tasks – filling your sales funnel, providing your goods or services to your customers, and offering excellent customer service. If you’re trying to manage your bookkeeping, too, you may find it’s hard to keep up with your books in a timely manner.
- Grace can set up a proper accounting system that tracks invoices sent to your customers and gives you an aged accounts receivable This report would show what invoices: 1) have been issued; 2) are coming due; 3) are due; 4) are overdue; and 5) have been paid.
- Grace can prepare and send professional invoices to your customers on a timely basis once you’ve completed your work for them. Often, when small business owners try to handle their invoicing on their own, they can fall behind in this process, jeopardizing their incoming cash flow. Inadequate cash flow in means they can’t pay their employees, vendors and/or suppliers on time.
- Grace can regularly review your accounts receivables to check on the status of your customer invoices. She can make note of which invoices are coming due soon and which are overdue.
- Grace can follow up with customers who have fallen behind on their payments. She can send friendly reminders that ask them to pay promptly. Additionally, Grace can email or call your clients who are past due to inquire about the status of an invoice. Maybe the invoice didn’t get delivered to the right person for payment processing. She can ask your customer to pay your invoice right away.
- Grace can keep track of which customers pay on time and which frequently pay late. Therefore, you can decide how you want to handle certain customers who are habitually late in paying you. For example, you may decide to:
- Charge late-paying customers a late payment interest fee. Grace can help make sure you collect these fees from those clients.
- Require full or partial payment in advance from certain customers who have a history of making late payments, so you can get paid before you complete any work for them. Grace can ensure these upfront invoices are prepared and sent to these customers. And she can follow up if the invoices are not paid.
Let The Payroll Department Help You Manage Your Cash Flow
As you can see, The Payroll Department, located in Brownsburg, Indiana, can help you stay on top of your accounts receivables. Therefore, your small business can maintain proper cash flow for optimal success. By outsourcing your bookkeeping with The Payroll Department, you can rest assured that you’re getting a knowledgeable and experienced bookkeeper who can make sure you get paid promptly.
To learn more about our bookkeeping services, contact Teresa Ray at 317-852-2568 or by completing this online form.
-Ariane of The Payroll Department blog team