A study conducted by a national bank in the south east found that the average SME is owed on average £109,940 by customers. This is a worrying figure as statistics show that this is an increase of 139% since 2014. Failure to receive payments in a timely manner can have significant effects on cash flow and can make future payments difficult to maintain.
Although this increase in typical debt may not directly reflect your own position, the findings should serve as a gentle reminder to ensure that you are on top of your bookkeeping and fully understand your management accounts.
To reduce the risk of being owed money, make sure you are invoicing in a timely fashion, keeping on top of who owes you and who you owe and regularly maintain your bank position. As specialist in supporting growing businesses we can help you if you are struggling to keep on top of this aspect of your business.
As well as bookkeeping, Evans Weir offer a full management accounts support providing regular financial reports so you are fully aware of your overall position in terms of accounting data.
If you are concerned about bookkeeping or management accounts, do not hesitate to contact Evans Weir and we will be happy to provide you full support with the processes.