Do you have problems with cash flow in your business? Are you always waiting on checks to arrive in the mail from clients? Maybe part of the problem with your cash flow issue isn’t all your customers fault, but yours?
Over the last few years, I have had to purchase two new HVAC systems for rental properties that I own. Both times and the most recent purchase, just two weeks ago, I have been wondering when I was going to receive the HVAC companies invoice for the new A/C unit I purchased. Now, as a consumer, I am glad I haven’t received their bill yet. It has in a sense gave me additional “terms” to pay, but can you imagine how much faster they would have their money in hand if they were able to get their invoices out within 24 hours of completing each job?
Systems and procedures are so incredibly crucial in running a well oiled landscape company, or any company for that fact. Prior to having landscape computer software that is set up to queue my accounting program for invoicing once a job is completed, I used paper work orders. Once a job was complete, the job foreman would turn the paper work order in and give it to the original salesperson who sold the job. The salesperson would then check over the hours and materials used, adjust the bill if needed and then turn the work order in for immediate invoicing. Invoices would and should ALWAYS go out within 24 hours of the completion of each job.
Another important part of cash flow is making sure you are staying on top of your late paying clients and holding them accountable to your payment terms. Business is business and as a company, you need to be paid in a timely manner too. I highly recommend following up with late paying customers at least weekly and not performing any additional services to their property until their account is paid up and current.
If cash flow is a problem within your company, step up your game and look to see if there is anything that YOU can do to help with this issue. Much of time, a simple internal change of processes and procedures can help accelerate getting paid much faster!