I recently attended a business breakfast sponsored by Bentleys Perth Chartered Accountants at Frasers Function Centre on Cloud Accounting Systems for SME’s.
The presenter was excellent and knew his stuff.
When he got to invoicing and follow up collections of the invoices he demonstrated a very good aspect to the system that you can email an invoice and when it comes to follow up and if the invoices have been paid or not paid the system tells you if the email was opened and by whom.
Then he explained with excitement that this will eliminate the old excuse!
“I haven’t received the invoice please send another – the old delayed payment trick”
Because then he said your bookkeeper can call your client, have the conversation and use the answer the email has been opened and I know by whom! so catching out your client and hence encouraging them to pay.
Also he said if your client doesn’t open the email the system will show that it hasn’t been opened and you can then have the conversation and when they – say I haven’t received the invoice you can press one key and another one will instantly be sent.
We all thought this was fantastic and great for cash flow!
THE KEY FACTOR THAT WAS NOT DISCUSSED WAS WHO WAS MAKING THE CALL FOR COLLECTION AND THUS PAYMENT OF THE INVOICE
The presenter was thinking SME and referred to the person making the call as the bookkeeper.
Most Bookkeepers keep the books and reluctant to make numerous collection calls.
CASH FLOW IS GENERATED BY A SKILLED CREDIT CONTROLLER!
This person is trained in the skills of negotiation, customer service and knows how to be
Firm but Fair when dealing with clients for payment of accounts and is not backwards in coming forward to follow up until the debt has been paid in full.
So when it comes to CASH FLOW IS KING make sure you have the right person managing that cash flow for the good health of the company.
Till next time,