Paying your bills on time is just as important as collecting invoices. These responsibilities should fall on your bookkeeper. ![]() They just don’t have a system in place for tracking and paying bills. Lots of times, small business owners don’t intentionally delay their payables. But aside from that, delayed payables can lead to more serious problems, like incurring late fees or having deliveries withheld. In addition to collecting what’s owed to you by your customers, you also need to make sure that you’re paying what you owe to vendors.ĭelayed payables are another crucial problem for small business owners.įor starters, you don’t want to develop a reputation for not paying or being late with payments. You can even leverage software for automated billing and follow-ups. Include due dates and impose late fees for bills that aren’t paid on time. Establish effective invoicing habits.įollow up with unpaid invoices. The way to overcome this challenge is by diligently tracking your receivables. Clients that pay late or don’t pay at all can be the downfall of your business. Depending on the type of business you have, you might be performing work and not getting paid for extended periods of time.ĭon’t fall into a cycle that you can’t get out of. ![]() Delayed ReceivablesĪnother major bookkeeping problem that small business face daily is managing their receivables. For a more in-depth analysis on this, refer to my guide on cash flow management tips for small businesses. But you also need to:Īll these elements stem from your bookkeeping department. I’ve seen so many small business owners that simply look at their checking account balance and see a number that they think is suitable. In order to properly manage your cash flow, you need to keep a close eye on your accounts receivables and accounts payables. According to Business Insider, 82% of small businesses fail because they experience cash flow problems.
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