Paying your company’s bills on time is much more than just good business practice. Settling up with your suppliers in a timely manner is essential if you want to build a good working relationship with them. However, making sure that all of your bills are paid when they are due, is easier said than done.
In this article, we’ll take a look at ways to make sure that your firm’s bills are paid on time, every time.
Start from scratch – write a list of everyone you pay on a regular basis
Write down anyone you pay regularly, from your suppliers to your electricity provider. Note down how often they tend to invoice you, including any regular payment dates.
Set up a payment calendar so you can see, at a glance, when the next bills are likely to come in. When you order something from a supplier and receive their invoice, check the payment terms and note the ‘deadline’ in your payment calendar.
This way, you’ll start to build up a diary of payment dates and will be able to easily see which bills are due to be paid during the weeks and months ahead.
Automate payments where possible
Everything from loan repayments to electricity bills can be automated, meaning that you don’t have to remember to pay them on time – it will just happen automatically.
Pay bills when you receive them
It may not always be possible due to cashflow, but if you struggle to remember to pay your bills when they’re due, it may be best to try and pay them when they land in your inbox.
Use technology to make sure your clients pay you on time
Ensuring that your clients pay you on time is vital so that you have the cashflow to be able to pay your bills on time.
Utilise cloud-based technology to invoice clients and send out reminders at regular intervals before the invoice you’ve sent is due to be paid. What’s more, most systems allow clients to pay online. The simplicity of paying in this way means that you are much more likely to get paid on time. And therefore be able to pay your company’s bills in a timely manner.
Short-term borrowing to help cashflow
If you are short on finances, a short term loan could help you to bridge the gap until the money comes in. While this option may be viable if you experience cashflow issues from time to time, regular cashflow problems could signal a larger issue with your business.
Not paying your bills when they’re due could harm your business’ reputation. The odd missed bill may not be the end of the world. But making sure that overdue bills don’t become a regular feature of your firm is vital if you want your business to be a success.