The terms ‘debit’ and ‘credit’ can be confusing when learning accounting for the
first time.

Perhaps this article will help you see this tedious task in a new light. Follow along with me and I can turn your bookkeeping nightmare into the best paying
part-time job you ever had.

If you’re finding that your clients are slow-payers, maybe your invoice language is to blame.

For instance, does your invoice invite action or inaction? An invoice that simply says, “Payable upon receipt” sends a non-urgent message to your customer that he can “Pay me when it’s convenient for you,” instead of “Please pay me now”. That’s just an open invitation to slow payers to drag out the payment process!

So you thought invoices are only useful to collect payments? But here’s a revelation - you can use the billing contact with your client for business promotion too!

By using invoice promotion you can give back to existing customers and maybe even solicit new work. You may also be able to get new customers.

Here are a few simple suggestions how you can use invoicing as a promotional tool:

• Print a little footer on the invoice to the effect, “10% Off your next purchase with this invoice” and encourage prompt action by giving a deadline, “expires 30 days from now”, etc.

Cash is King…That is what everyone tells us and it is true! You cannot function successfully in any business without proper cash flow. So if this Cash Principle is so well known, then why is it that so many businesses struggle? Sometimes the obvious is not always so obvious when you are entrenched in running the day-to-day aspects of your business. Here are 7 Tips to Improve Your Cash Flow!

1. Cash and Carry. Operate a cash and carry type business versus worrying about receivables. The best business plan is one where customers pay at the time of purchase so you don’t have to worry about invoicing or collection procedures. Invoicing and collections take up valuable time, so you want to come up with creative ways to incentivize payment immediately. Set the ground rules in the beginning so your clients know what you expect.

2. Receivables Collection. Collect your receivables in a prompt manner. Don’t let them hang out there forever until your customers decide they want to pay you. Being a good steward of your business is “good business”, so have a process in place for invoicing and collections. The longer your receivables are outstanding, the less likely you are to collect. You don’t have

As a business owner, it’s rarely possible to completely guard against bad debt; after all, the only way to avoid debt would be not to trade at all. Running a small business is not without risk, but there are steps you can take to reduce the risk of debt. All companies have to get paid somewhere along the line, and it is important to be aware of the nature of your customer at the outset of any trading relationship.

It is often advisable to carry out a credit check on any potential client before entering into a trading relationship, especially if you have no prior knowledge of the client. Also, give the client a credit limit which reflects