small business uncertainty & collecting payments
Amid the ongoing uncertainty, it is all too easy to feel that we are losing control, that we are on our own and that decision-making has been taken out of our hands.
However, by making some small, easy-to-achieve changes now, we can create real, long-term benefits for our businesses – regardless of what is happening elsewhere.
So, here are a few tips from us at Eazipay, one of the country’s leading Direct Debit companies.
Understand your cashflow. Your hard-work and success will be undermined if you are starved of cash. Make the decision to have your invoices paid by Direct Debit. That way you will be able to predict your cashflow with pin-point accuracy. Online payment systems are transforming the way companies pay each other, and Eazipay is in the vanguard of that payment revolution.
If you partner with Eazipay, we will help you gain complete control of your money, by introducing you to the Xero integration system an easy-to-use small business accounting package. With Eazipay collecting your invoices and Xero keeping track of your other business finances, your cashflow will never have looked so safe and secure. Collecting payments you are owed has never been so easy or reliable.
With cashflow still firmly in mind, be ruthless about setting budgets. Have a clear idea of what you want to achieve and how much budget and resource you need to allocate to the tasks.
Solid budget planning gives your business a financial structure on which to build and grow. And because you partner with Eazipay, you will have the cashflow confidence to drive your business forward.
This one sounds so obvious that it hardly merits a mention. But you would be surprised how many SME’s make the mistake of thinking their business money is the same as their personal money. It isn’t and if you don’t separate the two, then you could run the risk of creating personal tax liabilities.
Adopt a professional approach to your business and its financial profile. There is any amount of excellent, solid business advice available to you – much of it free.
Have a look at Eazipay’s website or your own bank’s website. Adopt practices that tell your customers that you take them seriously. Look as though you are worth the money you are charging.
For example, Barclays Bank offer all manner of free business support, from start-up advice to succession planning.
Keep your outgoings under constant review and be prepared to drive costs out of your business, wherever you find them. For example, how often do your review your company’s insurance needs? Are you under-insured? Are you paying too much? If you have decided to downsize, are you now over insured?
Shop around and use free, expert advice on the level of insurance you need
As far a retirement is concerned, are you relying on your business activity to fund your retirement standard of living? If you have all your eggs in one basket, what happens if the business takes a dip. Talk to an expert (ask your bank or accountant) to recommend a specialist who will help you plan for your future.
Now, here’s a horrid one: understand and meet all your tax deadlines. Do you know when your VAT, Corporation Tax and Personal Tax is due? If you don’t then you could be hit with a sizeable bill, additional charges, fees and penalties. As well as unnecessary stress, this situation leads to cash leaving your business for no good reason.
There is never a good time to face a surcharge.
And finally, for now, if financial problems start to loom, don’t let them overwhelm you and your business. Tackle financial issues before they take on a life of their own, before they demand more of your attention than they deserve.
In uncertain times, it is up to us to create the level of certainty we need. It is up individual businesses to protect themselves and their cashflow.