Getting the cash in
If you have been in business, or work as an accountant, you’ll know cash is king. Of course, cash does not necessarily mean notes and coins, but cash in the bank. In my experience, getting cash from customers is not as easy and automated as one might think. There are always reasons why customers won’t pay – be it a quality issue, problems with services received or just being stubborn. But regardless of the reason, a business needs to get the cash in, otherwise, it WILL fail.
In my career, I have had the (dis)pleasure of sitting down once a month or so with a list of customers owing money. It’s great fun sometimes, and you get the “dog ate my homework type excuse”. One of the great excuses was ” we never got your invoice”, and today this would be retorted with “well it’s in your inbox now, so please pay”. And there may be some genuine excuses, like a family bereavement or lack of action on something like taking back returned goods or issuing a credit note. Or it may be as simple as your credit checks were not up to scratch. Regardless, whatever the reason or excuse, the best attitude is to be friendly but firm – or maybe professional is a good word. A guide from CPA Ireland equates getting paid by customers to getting your salary paid. This is a great analogy. The guide also emphasises the importance of communication, and this means not just with customers, but also with internal staff like sales people to try to determine why customer and not paying – unfortunately, the accounts receivable functions on most software I have ever seen never have the full story on why customers won’t pay.