News & Views
8th December 2022
The Importance of Generating Pre-Christmas Cashflow
Consistent processes for recovering unpaid accounts and maintaining cashflow are important all year round, but become even more critical during the Christmas and New Year period.
As we head into our third festive season post-Covid, we find ourselves dealing with some different dynamics. To that end, it is important that credit management remains a priority to ensure that your cashflow stays on track this festive season.
Top Tips from Lynch Meyer
- Keep on top of invoicing – make sure you regularly invoice customers in accordance with your terms / credit agreements. Missing dates for invoicing can create longer delays (and headaches) when they fall overdue.
- Make and keep an updated list of all outstanding and aged accounts – this will ensure that, heading into the silly season, you are on top of all of your problematic accounts.
- Be consistent with notices or demands to customers – have a clear internal process for following up overdue accounts. This may be sending a reminder letter at seven days overdue, and then a phone call at 14 days overdue.
- Engage with your customers and head contractors – it’s always best to keep lines of communication open with your customers and try to find out if there are any reasons for non-payment. This will assist you to work with the customer / head contractor towards a prompt resolution.
- Review WIP – now is as good a time as any to reflect upon the year that’s been, and review your outstanding WIP to assess the impact supply shortages, increased cost of goods and delays to work schedules.
What next?
If you are still not receiving payment, then we suggest obtaining some advice rather than letting the debt age. By that stage, it becomes much harder to collect.
We appreciate that legal action can be intimidating. The collections team at Lynch Meyer Lawyers ensure that the recovery process is straightforward, efficient and affordable. They tailor our action to the circumstances of each account, and pay attention to variables that may impact collection and cost.
If you have any queries about your unpaid accounts or would like to discuss the collection process, please contact Alice Carter at Lynch Meyer Lawyers on (08) 8236 7626 or Georgia Gray on (08) 8236 7602.
Don’t forget that Lynch Meyer Lawyers offer all NECA and RACCA members a FREE telephone legal hotline!
