Tradie Bookkeeping Services will work with you to ensure that your payment terms and conditions are not only clear and concise, following through with reminders and payment obligations to your customers.
On the flip side, your own suppliers will also have their specific payment terms and conditions. Aside from the obvious: paying your suppliers as quickly as possible within their terms, we can look at other ways to review your supplier payment terms and save you more money.
If supplier payment terms are reviewed frequently this can help you manage your own cash flow and there are ways of doing this. It may be negotiating new, longer payment terms, perhaps from 30 days to 45 days which will smooth out your cash flow. You may be able to commence payment terms from complete delivery rather than from part delivery.
There are numerous terms that can be considered and negotiated to your benefit and if your accounting software is configured correctly and kept up to date you will have a much clearer idea of exactly where and when your cash flow occurs and when you need it the most.
We do recommend regular, preferably weekly payment days being set aside. An accounting system that has been set up with good controls will make sure that your suppliers are not paid early, over-paid or paid twice by mistake. It’s wise also to review your supplier contracts at least once a year, looking for discounts, lower prices, bulk pricing advantages and discounts applied when payments are made on time within terms.
Payments to suppliers can be a one off or a single payment may be made for several bills. In this case allocation of individual amounts is necessary and that’s why we are the experts. We know our stuff! Tradie Bookkeeping Services are here to make your life not only simpler but also more streamlined from a bookkeeping perspective.
OUR TRADIE BOOKKEEPING SERVICES:
Recording Transactions Services
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