Tag Archives: Money
A business needs money. It is a fact, without money you don’t have a business. All business owners know that cash flow is essential. Making a profit at the end of every month can be the difference between being able to pay all the bills and taking home a salary. This is why a business creates invoices.
There are some business owners who seem reluctant to issue invoices for the work they have completed or for the product they have provided. It is not uncommon for a business owner to issue an invoice up to six weeks after the service has been provided, then wait until their customer decides to pay. Some customers are increasingly paying later and later, if at all. Credit Control is then delayed or not undertaken at all. Consequently; invoices are not being paid. A business can then suffer serious cash flow issues, which ultimately, could cause them to stop trading.
How can this be avoided? There are a number of options a business can employ.
1 Outsource the accounts function to a Bookkeeper. There is a cost associated with this option, but a qualified Bookkeeper can easily issue invoices, assume the credit control function and ensure that the accounts are kept up to date. There are additional advantages of using a book keeper.
a) A good bookkeeper can give some management reports that will give the Small Business owner an idea on how well the business is doing on a month by month basis
b) When the business accounts are sent to a qualified account at the end of the year, the accountancy fees could be reduced as the businesses’ financial records will have been kept up to date.
2 Outsource the function of invoices and credit control to a Virtual Assistant. There is a cost associated with this option, but the business owner will know that the invoicing and credit control have been completed. One advantage for using a Virtual Assistant is that once the VA knows the business they are in a position to do some additional administrative and secretarial work for the business owner.
3 Outsource to a Factoring Service. Factoring is an easy way to alleviate the possibility of any cash flow issues. A small business sells its liability (invoices raised) to a third party. They will forward the business the funds raised on the invoice, deducting circa 20%. Be aware there are different sorts of Factoring, research is highly recommended. Ensure you understand the Terms of Business before entering into any contract.
4 Employ a part-time office assistant. Although there is a cost associated with this option the business owner will also have to comply with all current employment legislation. The goal of any business is to ensure there is cash in the bank to pay suppliers, pay staff and create profits. If a business is reluctant to issue invoices and undertake credit control then there will be limited cash for the business to carry out any of these tasks.
Have you heard of the term CPD? Do you know what it means and more importantly, do you know what it involves?
CPD stands for Continued Personal/Professional Development. In short, it means that you continue to study after you finish school, college or graduate from university. There are a number of professions that once you achieve a pass mark in the basic qualifications will be the start of a lifetime of study, for example a solicitor, a doctor or a planner. What about your profession? Do you need to embark on CPD?
If your profession does not demand Continued Professional Development, have you made the decision to discontinue studying? To have a successful career, we advocate a continued approach to education/studies. Continued Professional Development is there to help you excel in your chosen field. CPD will also keep you abreast of the latest trends, legal changes and current business relationships which ultimately could give you an advantage over your colleagues and competitors.
Making a personal decision to continue your education/studies and improve your knowledge in your chosen field may become a prerequisite of your employment. An example of this is the IT Industry. Information Technology is changing all the time and good developers, support staff and programmers need to keep abreast of current technology, languages and innovations. If, you decided to terminate your studies, this could this have a detrimental effect on your career.
Once you have made the decision to continue with your education, what should you do? There are a number of organisations that can facilitate your education. The only decision you need to make, will be, which route suits your personal circumstances:
1 Online training courses
2 Studies in a classroom setting – often given by trade bodies
3 Correspondence courses
4 Seminars and Open days
5 Trade Federations
6 Professional Magazines in a chosen field
You could be in an occupation where CPD is not required. Nevertheless, this does not mean that further study is not for you. It could be advantageous for you to engage in a study course with a local college or night class in one of the hobbies you enjoy for example cooking or sewing. Furthermore you could learn a new skill, for example car maintenance.
Further more studying has a number of wonderful side effects. You could meet new people, gain a skill and more importantly keep your brain active. Indeed, the Alzheimer’s community have suggested that keeping your brain active could help prevent many mind degenerative disease.
All studying requires is your dedication to the course, that you will be receptive to new concepts, your time and the drive to become successful.
Its Monday tomorrow so what is the plan? How about making it a MONEY MONDAY. Check out your numbers. How much money in the bank, how much money owed to you and how much money do you have to invoice today. It’s all about the numbers.