Discover how our Merchant customers operate at their best with Intact iQ.Find out more
Discover how our Wholesale & Distribution customers operate at their best with Intact iQ.Find out more
Discover how our Retail customers operate at their best with Intact iQ.Find out more
Discover how businesses from a wide range of sectors operate at their best with Intact iQ Design Suite.Find out more
Our flagship product, Intact iQ, is next-generation ERP software designed for today’s digital economy.Find out more
Intact Xline is a powerful business management software solution designed for small to medium-sized companies.Find out more
Our agile development framework enables us to quickly develop and regularly deliver new features that provide the most business value.Find out more
Our consultants work directly with our project team to future-proof your business, facilitate your long-term goals and accelerate growth.Find out more
Our local, dedicated technical support specialists are on hand to ensure your system is always operating at its best.Find out more
Our qualified and experienced ICT engineers advise, supply and deploy your perfect fit on premise or cloud based solution.Find out more
We offer a range of courses to help you get the most out of your software and further deliver on your overall business objectives.View courses
Implementing and supporting our leading ERP and business management software solutions since 1992Find out more
We are instigators. Change makers. Future thinkers. Determined to take your business to the next level.Find out more
Hear what our team of Intacters have to say about life inside IntactFind out more
Provides a unique range of benefits to enable partners to differentiate themselves in the marketplace and add exceptional customer value.Find out more
Our local, expert team are on hand to answer any queries you may have. Get started and elevate your business with Intact.Contact Us
Find out how our software solutions enable our customers to elevate their businessesFind out more
Our technology and industry experts keep you informed of the latest trends, expert advice and best practice applications impacting your businessRead more
Explore our range of ebooks, white-papers, videos and product brochuresFind out more
Keep up to date with the latest Intact news and eventsFind out more
We’re here to partner, collaborate and innovate with you. Our mission is to ensure your perfect fit software solution continuously enables you to elevate your business.Find out more
As today’s tough credit environment continues it is important to keep your cash flow in focus. Cash shortages can prevent you from meeting your financial obligations and make it difficult for you to plan for the future and expand your business.
Here are some simple things you can do to improve your cash flow and how your accounting software can help…
It is very easy to get caught up in the running of your business that you can neglect the cash flowing into your business. If you don’t already have the right procedures in place, start billing your customers on a regular basis. It is good practice to bill your customers promptly. The sooner you send out invoices, the sooner you are likely to get paid. With options such as emailing invoices and statements available in most accounts packages, you have no excuse not to send out your invoices immediately goods are dispatched. This will also save you money on postage stamps.
In order to improve the cash flowing into your business, you need to have a good collection system in place. Questions you should ask yourself…
The above will not only have an impact on how quickly you get paid but also improve the level of customer service you are giving to your customers; which in turn can encourage them to pay on time.
Most accounts packages now include a Credit Control Manager to assist with debt collection activities. Some packages also included features such as automated Debt Chasing Letters, an option to charge interest on overdue accounts and reports such as Average Debtor Days per customer.
If you have invested time and money into selecting your accounts package, find out what features are available to assist you in improving your cash flow.
If you are having problems with cash flow, check how your customer terms balance against your supplier terms. If your average debtor day is 45 days and your average payable day is 28 days, there are 17 days that you have to float. This could mean you have to avail of additional working capital to get over the shortfall. Time should be spent evaluating customer and supplier terms and make any necessary changes. Customers who used to be good payers and received favourable payments terms in the past might not be in the same position this year.
Remember also to clearly display your terms and conditions on each invoice to avoid any confusion down the line.
If improving your cash flow is your priority, it should also be the priority of all staff members. Your staff are in contact with your customers on a regular basis so why not put staff targets in place to motivate them to chase outstanding debts? Whether or not you have a computerised system, it is also important to keep clear customer records, including a record of all letters, face-to-face or telephone conversations.
Your accounts package should be able to assist you again by having messages appear on a customer’s account e.g. alerting staff of those on ‘credit stop’ or other messages that would suggest to that staff member that payment is required.
Ensure that your payment methods are simple and clear to encourage prompt payment. Can your accounts package process direct debits? If so, do your customers know? Are your bank details clearly displayed on your invoice? If customers are paying by cheque, is it clear who to make the cheque payable to and where to send the cheque? Simple things like this can make the difference.
A healthy cash flow is vital for your business’s survival so the key to collecting any debt is to act quickly. Don't allow too much time to pass without notifying your customers that credit terms have been broken. Remember that you want to retain these individuals as customers, so treat them with respect.
Why not check out: 10 more must-have EPOS features for your trade counter operation