Comment by Tim Benson Publisher B2B Magazine
Johnny Cash and the business of getting paid …
Have you ever wondered why accountants, bookkeepers and business advisors tell you to stay on top of your debtors, whilst on the other hand advise you to string out your creditors? Well, probably, because, I assume, its sound business advice. What would I know I’m just a small businessperson that has experienced the ‘good, bad and ugly’ when it comes to paying and getting paid bills and invoices.
I’ve had clients that pay on receiving an invoice and I’ve had clients that pay after 90 days. I’ve paid bills over the phone without an invoice and I’ve run up large debts and negotiated payment over considerable amounts of time.
I’ve put payment details and arrangements on my invoices that have been followed, and I’ve been dictated payment terms by some clients.
I’ve often wondered whether I should take bookings from those that state up front that they will not pay for 60 or 90 days. But, hey, wouldn’t that be a luxury to knock back paying, eventually paying, clients.
I’ve shifted in last couple of years from invoicing once a month to invoicing as I go. Initially this was done to increase cash flow. But to be honest my tiny brain can’t seem to get across the ebb and flow of revenue coming in from day to day. That’s why a good bookkeeper and accountant are essential (that’s what they tell me).
But back to the issue of the amount of time it takes to get paid for the services that you deliver. ‘Cash on the nail’ would be excellent. Big bags of cash on all bookings. Bring on the ‘Johnny’. Is this not too much to ask? But, I suppose, like many of you, I don’t have the luxury of putting up a sign that says: ‘CASH ONLY’.
In fact, I cannot remember the last time someone paid me cash …