MYOB Training

Regardless of how many MYOB courses  or money-making seminars you've attended, running your own business is always a challenging balancing act, and unless you apply discipline and planning to the management of your accounts, it's very easy to get tilted off course.

Staying on top of your creditors is a crucial part of making sure your business stays afloat, because as soon as you start ignoring invoices and putting off payments it's only a matter of time until you experience a snowball effect and begin to be overwhelmed by the amount you owe. Here are some helpful tips for keeping on top of your finances and managing your creditors in your business.

Prioritise

As soon as you receive a bill or invoice that requires payment, prioritise it in terms of its due date, and whether or not there is a discount available for early payment. Most business management software includes features that allow you to do this as soon as you enter the bill which means that if the invoice is a regular one like a rates notice or electricity bill, you can program your software to allow for it every month. Always try and pay creditors as soon as possible, but if you find you are unable to pay immediately, pay the ones that will cause you the most trouble if they run overdue--for example, it's important to maintain positive business relationships so when a vendor or contractor invoices you for a product or service they have provided paying them promptly is a sign that you're a valuable associate.

Keep Accurate Records

Always keep an log of correspondence that occurs between you and your creditors, as well as receipts and confirmation numbers for any payments that you make. If you are able to provide evidence of every transaction that as passed between you there is no risk that you could be accused of failing to provide payment. Keeping accurate records will also prevent accidentally paying the same bill twice.

Firmly negotiate costs

Whenever you enter into a business agreement with a creditor, make sure you are both crystal clear about your obligations, what you are paying for, and any other additional costs that may arise. It pays to know in advance what added expenses may be incurred and for your creditor to be aware of what you're willing to pay.

If you run a business, managing your creditors doesn't need to be a nightmare, but it does need ongoing effort and organisation on your part. Whoever is responsible for paying accounts in your business, it is advisable that they learn MYOB  or some other form of accounting software in order to keep tabs on the incoming and outgoing payments and ensure that your business continues to move forward steadily.