Sales & Purchases
Sales (Debtors Ledger)
It is essential for your business cash flow that you collect what is due to you as efficiently as possible. There are a number of ways you can do this:
- Check out new customers thoroughly to avoid the risk of bad debts
- Establish credit limits for customers and stick to them
- Review your debtors listing regularly to see who is falling behind
- Do not let any of your debtors get too big where you come to rely on them
All of this takes time and experience.
Bookkeeping Partners can ensure you keep the cash flowing in the right direction.
Purchases (Creditors Ledger)
One of the cheapest forms of finance is to take full advantage of your suppliers’ credit terms. This is essentially a free loan. Alternatively, some suppliers offer discounts for early payment which can result in significant savings.
Bookkeeping Partners can monitor your creditors ledger, another time-consuming activity, to ensure maximum savings. For example, there may be supplier invoices missing that you have paid VAT on. If these are not included in your VAT return, you cannot claim the VAT back for them.