Posts Tagged Money
Bad debts
Bad debts. Is it a taboo subject?
I guess sooner or later it must happen to every business. The trick is how you deal with it.
This year Bizpro has had more than it’s fair share of non payers. No less than 3 clients have ‘done the dirty’ on us this year so far, and whilst that doesn’t sound like much, to a small business it can be crippling. We’re lucky in that we have a ’safety net’ to see us through the lean times, but even so, the point is it’s just not cricket!
If a client is having difficulty in meeting payment and they keep you informed, that’s one thing, and most suppliers, me included, tend to look more favourably on.
However, It’s quite another when they go completely quiet on you and ignore your calls in the hope you will go away. Truth is, it’s not going to go away. Ignoring your situation will only make things worse. I’m a lot more strict than I used to be. This is out of necessity. My payment terms have always been fairly generous for a small business at 30 days, although this will shortly be changing to 7 days. After this period is up, if I’ve not received payment they get just one reminder to pay within seven days – after that it’s straight to the filing a claim online. After all, I’ve provided the service, the client has had the benefit, the least they can do is pay for it on time.
My advice to anyone struggling to get payment out of a client is not to put up with it! Don’t be afraid to talk money. Make your payment terms clear at the very start of any contract or relationship. Establish your boundaries, and stick to them. Remember, you’re worth it, and so is your business!
November 26, 2008
Posted by: Kerry
Categories: BizBlog Guest, General, Money
Tags: BizBlog, Bizpro, Budget, Money, Moore Stephens Chartered Accountants, Small Business, VAT
The Budget – How will it affect small businesses?
There seems to be one word on everyone’s lips at the moment; Budget. It’s something that affects us all, and this year we’ve been waiting with baited breath amid all the speculation, so here’s what BizBlog’s guest blogger, Phil Hendy of Moore Stephens Chartered Accountants based in Malmesbury has to say about it:
Chancellor Alistair Darling presented his Pre-Budget report on Monday 24 November 2008. As anticipated there was a concentrated effort to introduce measures to protect and support businesses through the difficult and challenging economic climate. The measures are also intended to help individuals and those on lower incomes. So, what are the main changes that affect small business in the short term?
- Reduction in the rate of VAT from 17.5% to 15%. This is effective from 1 December 2008 and will revert on 1 January 2010.
- Personal tax allowance to increase to £6,475 for the 2009/10 year.
- Deferral of increase in lower rate of Corporation tax. Therefore the rate will remain at 21%.
- Trading losses will now be able to carry back losses of up to £50k for three years.
- The capital allowance regime on cars costing over £12k will be based on CO2 emissions from April 2009.
