Your EnterQuest Bulletin - Issue 278

Thought for the week: "In the business world, the rear view mirror is always clearer than the windshield." Warren Buffet

• Ten tips for better cash flow
• Free remote connectivity software
• Alternative to Internet Explorer
• Government guidance on energy performance certificates
• Handy VAT dos and don'ts

Ten tips for better cash flow

Small firms depend on having a ready stream of cash to pay the bills and keep their business ticking over.

Cash flow is crucial for any business, but for the small firm it is king. The credit crunch brings economic slowdown but it also causes a similar slowdown in the payment of invoices, which can lead to cash flow problems.

Here are ten tips for managing your cash flow effectively.

1. Agree terms and conditions of sale up front and stick to these; put payment terms on the invoice and establish debt collection procedures.

2. As soon as work is done or completed, send the invoice. Follow this up with a phone call to make sure that it has been received and find out when payment can be expected.

3. Look to offer incentives for prompt payment. These will improve cash flow but have to be costed out to assess the true effect on your profitability.

4. Make sure you have a good collection system in place and make sure you follow your procedures when collecting debts.

5. When customers fall behind, chase up late payments rigorously and record all conversations you have and save all e-mails you receive regarding the invoice. You should also set targets with regard to debtor days or collection amounts.

6. For more difficult cases, consider using a debt collection agency to recover your payment and remember you can charge interest on late payment of invoices.

7. When it comes to disputes, aim to resolve them quickly and make sure you have copy documentation, such as proof of delivery etc, to address any queries.

8. Consider financing options. Invoice finance can help with the funding of invoices and collection, and can advance up to 85% of unpaid invoices when they are raised.

9. Use a computerised accounting system so that you have a back-up of invoices/reports etc, and keep copies of orders, invoices and sign-offs from the debtor to validate that the work done has been agreed by the customer.

10. Suppliers - pay on time, particularly if you're a young business, as this helps to establish your credibility. Invoice finance can help with your cash flow and allow you to use the cash generated against your invoice to obtain prompt payment discounts from suppliers.

This tip is an extract of an article from EnterQuest's sister publication, BETTER business magazine. Subscribers to the magazine can read even more articles to help them run a better business, including:

Franchising - a formula for success. Franchising can be a very effective way to get into business - or start another one, if you are in the market for something new. (Issue 144)

Help people to get a lightbulb moment. If you want to build your business, it's vital you create a climate where people are not afraid to ask questions and come up with new ideas. (Issue 148)

Is your newsletter getting through? E-mail marketing is a cheap, effective way of reaching your customers. But are you getting your message across - or driving business away? (Issue 142)

To receive a free copy of BETTER business magazine simply send us your name and address to enterquest@cobwebinfo.com, putting 'EQ magazine offer' in the subject box.

Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.

• Customisation portal. Zazzle.com is a portal that holds hundreds of thousands of items and designs for sale. Users can buy an item then customise it using colours, fonts, designs and graphics. The site is community-based and user-generated.

• Band investment website. Bandstocks is a website that allows music fans to invest in new and up-and-coming bands and performers. The public can buy a stake in the artist in £10 increments. Once funding reaches a certain level, for example, £100,000, the artist can record an album with the money. Investors get a share of album sales.

Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.

Do you know the meaning of the word 'elucidate'?

a) to motivate
b) to clarify
c) to undermine
d) to remove

Answer at the end of the Bulletin.

The following topical business issues have been recently reported in the media. Did your radar pick them up?

1) Entrepreneurs and commercial landlords are knocking down their business buildings in a bid to avoid doing what?

a) renewing leases
b) paying energy bills
c) paying tax on empty properties
d) having to get an energy performance certificate

2) According to the Federation of Small Businesses (FSB), small firms could be faced with more regulations if they have to have formal meetings with employees who request time off for which specific activity?

a) caring for a dependant
b) training purposes
c) medical appointments
d) family emergencies

3) According to research by the Forum of Private Business (FPB), what percentage of small firms say their bigger customers are failing to pay within contractually agreed periods?

a) 25%
b) 53%
c) 69%
d) 88%

Answers at the end of the Bulletin.

Free remote connectivity software

@TheOffice is a shareware programme that allows you to access your office resources via any type of Internet connection. It's great for small business owners who need to access important information from home or remotely.

Alternative to Internet Explorer

Web surfers who have tried both Firefox and Internet Explorer and are still not satisfied may be interested in Opera. This is a credible alternative Internet browser, offering a good support community, frequent updates, and important browser functions and features.

Government guidance on energy performance certificates

This guidance from the Department of Communities and Local Government contains information about energy performance certificates (EPCs). From 1 October 2008 all properties, including homes, commercial and public buildings when bought, sold, built or rented, will need an EPC. This guide focuses on buildings which are non-dwellings.

Handy VAT dos and don'ts

This handy list of VAT dos and don'ts from accountants Bassett Herron will help to keep you on the right side of the taxman. Check out their other useful guides on VAT, which include cash accounting schemes, bad debt relief and VAT fuel scale charges.

Written by an expert in Excel programs and all they can offer, this book is for anyone who wants to know more about Excel 2007. It includes hints and tips on how to get faster results from the popular spreadsheet program and how to get to grips with the new 'Ribbon' interface. Check out:

Excel 2007 Miracles Made Easy, by Bill Jelen

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Good luck

The EnterQuest Team

This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.