Turning bad debt into good cash is central to getting back in control of your cash flow, as we pointed out in our last blog post. And we had had a great time looking into ways to improve cash collection at our recent ‘Getting cash from your business’ event, in partnership with the guys from Chaser.
There was a great turn-out for our morning session at the Royal Wells Hotel, with plenty of local business eager to find out more about Chaser, the debt-chasing Add-on for Xero's online accounting package, and ways to automate their credit control.
The problem of late payment
Unpaid invoices can be a problem. They create debt and they take time to chase.
So there was a lot of interest in the room around how automation of debtor tracking and cash collection could transform their businesses. And people were keen to share their stories of late payments, outstanding invoices and the impact they had on the day-to-day running of their companies.
As Tim French from Plumbsmart commented, his ‘lightbulb moment’ was realising how the time spent chasing his clients for payment was holding back his expansion plans for the business:
‘The time taken to get money in from clients was so long that it was actually hindering our growth. Why should you let your business die due to others not paying on time?’
Tim really hit the nail on the head for many business owners in the room. Why should your aged debts hold back your business? And this was one of the key reasons that David Tuck, Chaser founder and CEO, created their debt-chasing app – to automate the process of pursuing those late paying customers and to free up this admin time for busy business owners.
How automation saves you time and money
As David explained in his presentation, Chaser integrates with your Xero online invoicing and automatically sends out emails to late-paying customers as soon as their invoice is overdue. In essence, Chaser becomes your credit control team, but without expanding your headcount or increasing your payroll costs.
So you spend less time running debtor reports, phoning customers and asking for invoices to be paid. And your customers pay on time, improving your cash flow and removing the worry of bad debts and liabilities in the business.
And, as David was keen to stress, automation doesn’t have to equal impersonal:
‘We’ve seen how there’s a real appreciation for the old maxim of ‘Polite Persistence Pays’ – the Three Ps of good credit control. What Chaser does is deliver automated humanity – and that really improves the effectiveness of your debt chasing. It brings your personality into the automated process to get results.’
Chaser’s automated emails can be personalised and tailored to reflect your own personality and the overall brand of your business. They’re not generic emails in any way. The wording is your own and all reminders come from your own email address, not a standard ‘do not reply’ outbox.
It’s a powerful way to maintain those all-important customer relationships, while also making sure that clients pay your invoices on time.
The power of Naylor Accountancy Services and Chaser
As experienced business advisers, we know how changing and evolving your use of technology helps to grow your business. Use the tools at your disposal, give yourself an edge and you’re one step ahead of the competition.
So we’re very proud to be working alongside Chaser to develop a fully formed credit control service for our clients – and with the Chaser app in place, we know how this automated approach will save you time and give your cash flow a healthy boost.Get in touchto find out more about our credit control service – and how you can use Chaser for 90 days for free.
Come along to our next morning session
These early morning sessions are a great forum to hear from other business owners, ask your burning questions and get the expert guidance and advice you need from ourselves and our featured presenters.
So why not register for our next morning session where we’re be asking how you ‘Get clarity on where your business money is coming from’
We’ll be demonstrating a beautifully designed business intelligence software that sits perfectly with Xero, and we’ll be showing you how knowing where your business money is coming from helps you make the right decisions for the company.