Posts

Showing posts from July, 2012

Tips for reducing Bad Debt

Today Devine Accounting staff and clients attended one of the fantastic free business workshops with ANZ National Bank titled "How to manage your cashflow better."

One of the best things we took away ourselves was tips for reducing bad debt. Even a profitable business can struggle or fail due to cashflow problems and managing debt is a big issue for cashflow in many small businesses. Most business will experience bad debt. 

We all send out invoices and expect to get paid - but what happens when your customers don't pay?
Or don't pay in a timely manner? We all have bills to pay ourselves and if we don't get paid we sometimes have to cover our clients debt - or do we?

A customer who doesn't pay on time is basically getting an interest free loan. It is a loan because they owe money to you but it stays in their bank account - and until it is in your bank account, you cannot spend it yourself.
Tips for Reducing Bad DebtEstablish Terms of Trade between your business…