As local businesses face continued difficult economic times, an increasing number are seeking online solutions for managing their customer relationships and cashflow – a trend that’s seen software development and direct debit payment processing company Debitsuccess enjoy a 25 percent revenue jump.
Close to 50 percent of small business decision makers have dealt with overdue customer payments in the last year, with the majority reporting a rise in customer excuses for slow payments.
Cashflow remains a key priority for small businesses, with Dun & Bradstreet’s latest trade payment survey showing payment terms have reached three-year highs, with the average time it takes a debtor to pay a bill jumping more than five days in the first quarter of 2011. With cashflow back on the agenda, there’s evidence more businesses are reviewing their payment options to bring cash into the business faster.
Getting cash into your business is a two-step process that may seem easy, but actually determines whether you have a business or not.
Brad Callaughan blogs about developing new business strategies to prepare for a potential downturn.
“In times like these, cashflow will be your biggest issue. Debtors are paying in 30 to 60 days but creditors still want their payment within 7 to 14 days. A cash flow forecast with a strong focus on collections is how to keep your head above water.”
Over two-thirds of small businesses aren’t paying bills on time, with the number of organisations paying invoices more than three months late jumping to 20 percent.
Brad Callaughan looks at an area many small businesses fall down – planning.
“Lack of planning or direction can be the cause of your demise. If you aren’t looking at where you are going, how can you see opportunities or threats or be prepared to deal with uncertainties like cash flow or profit fluctuations.”
Small business owners are seeking more cashflow advice than any other business assistance, according to an American Express study.
Reckon Limited has made its latest software, CashBook Online, available, enabling business owners to record income and expenses, reconcile bank accounts, prepare GST returns and manage cash flow at any time.
Over 145,000 businesses experienced a risk downgrade in the March quarter, according to Dun & Bradstreet, as rising payment terms and bleak expectations for sales and profits put pressure on cash flow.
