Right then folks- there are mere days left. If you’re like most business owners, you want your bank balance at 30 June to be as healthy as possible. Here’s how to convert “Money owed” to “Cash at bank”.
– Sell the benefits, for them, in paying you before 30th June. Closure and the opportunity for “a fresh start in a brand new year without this debt hanging over their head”. They can claim your debt as an actual expense this financial year rather than needing to wait between 3 and 12 months if it falls into July. If you’re registered GST, remind them that they will get this portion back immediately. Explain that “Expense incurred” and “Expense paid” in the same financial year is so much easier and probably cheaper, for their accountant to reconcile.
– Explain that you are currently undertaking your annual June Accounts Receivable audit and are officially requesting they pay in full before 30th June.
– Explain that any outstanding invoices that remain unpaid on the 1st July will be “automatically flagged for enforcement action” and ask them if they wish to “remove their name from this list”.
– Call, call, call. For the next few days just hustle hustle hustle. The telephone is your best friend. Ring and ask them to please pay before 30th June. Explain the benefits for them, but also for you. If they’re a small business themselves, they’ll understand.
– Set yourself a target with a reward if you hit it. Targets = motivation. Look at what you’re currently owed- aim to collect at least 80% of that amount by the 30th June if possible. The other 20% represents “drop offs” or people that promise and don’t pay or those who just don’t respond.
– Visualise how great it will feel looking at your 30th June bank balance and feeling proud that you earned every cent. That number will be enshrined for the next 12 months. Make it as big as humanly possible. This will keep you motivated and inspired.
Cheers
How to get paid before EOFY