It’s been a crazy year so far. So, it may come as no surprise that the UK is in its first recession for 11 years. Many people have been furloughed or lost jobs as companies close or downsize. And there’s a sense of ‘limbo’, as people watch the latest Coronavirus stats and decide how to […]
It’s been a crazy year so far. So, it may come as no surprise that the UK is in its first recession for 11 years. Many people have been furloughed or lost jobs as companies close or downsize. And there’s a sense of ‘limbo’, as people watch the latest Coronavirus stats and decide how to bullet-proof their futures.
In times like this, small businesses are often hit hard. A recent Simply Business survey found that Coronavirus has cost the average small business in the UK over £11,000. Customer spend is at an all-time low, so you may find yourself with less cashflow than ever before. But having access to money is vital.
We’ve teamed up with our Three Means Business partner, FreshBooks, to give you advice on improving cashflow in your business.
How to improve cash flow in your business
Manage expectations with clients from day 1
Don’t be afraid to draw up a Pay Monthly before you start work. You might want to lay out your payment terms at this stage too.
Build a strong client relationship
Make regular contact so that the lines of communication don’t break down. And keep customers updated, so they feel part of the project.
Know who’s responsible for paying
Knowing your key contact will save a lot of time if/when you need to chase up an outstanding invoice.
Carefully craft your invoice terms
Be polite, don’t use jargon, and be totally upfront about when you expect to be paid. Implementing late payment fees is also a good idea.
Send invoices on time
The sooner you invoice your clients, the sooner they’ll pay you. So, don’t delay when you’ve delivered on a project.
Be crystal clear with your description of work
Don’t use any unnecessary jargon and make sure your client is clear about what they’re being billed for. This will prevent any misunderstandings.
Improve cashflow by accepting online payments
Online payment processing is vital right now. If you’re a FreshBooks customer, you can set yourself up to be paid online with a single click.
Automate your follow-ups
It can take some time for invoices to be paid, so you need to keep track of what’s due. FreshBooks will handle the client follow-ups so you can concentrate on running your business.
Three Means Business gives you a helping hand
With Three Means Business plans, you can get up to £500 worth of benefits from specially picked partners, including 6 months’ free subscription to FreshBooks. This cloud accounting service is packed full of features, designed to streamline and automate your accounting and admin.
With the FreshBooks app on your phone or tablet it’s convenient and easy to stay on top of the important stuff. Track invoices, check cashflow, and access all the features that help your business run smoothly, wherever you go. FreshBooks is completely secure and designed to help you spend less time on accounting and more time doing the work you love.
Support for small businesses during the pandemic
Wherever you are in the UK, make sure you look at the government support for small businesses to help get you through Coronavirus.