Recent research conducted by online accounting firm MYOB, has shown that 77% of small business owners feel the impact from customers failing to pay their bills by the due date.
Whilst this has direct effect on the financial situation of business owners, such as difficulty paying rent and bills themselves, the study showed that 52% said it impacted them in an emotional way, with reports of increased stress and anxiety levels.
“The financial health of Australia’s small business owners should be a top priority and the research indicates this also has a direct impact on their personal wellbeing,” said MYOB CEO Tim Reed.
At Carbon, we see this regularly with new business clients, who come to us for assistance with their bookkeeping needs. By setting them up with accounting software Xero, we’re able to streamline their accounts receivable functions. Not only saving them the administration time that is usually associated with this, but it also automated invoice reminders, reducing the chance of late payment. By integrating Xero with online payment gateways like EziDebit, it provides clients with an easy way to make payment online. We’ve found that this cuts out late payments due to the simplicity of clicking a couple of buttons to settle a balance.
Interested in finding out more about our bookkeeping services? Complete the contact form below, or head over to our bookkeeping pages.