Accountants make up around 50% of London & Zurich’s clients, so we have a deep understanding of the accountancy space and its processes and challenges. Whether this is collecting for VAT returns, tax returns, annual accounts, audits or ad-hoc consultancy work, without reliable cash-flow, accountancy firms and other agencies can struggle to operate effectively. A simple yet equally effective way you can scale up your accounting practice, is through managing your payments collection process via Direct Debit.
By choosing the right Direct Debit partner this will help your business’s cash-flow, as you will be able to know exactly how much money you’ll be receiving and when. By taking control of your payments collection process, you also have the added benefit of reducing lengthy administration and reconciliation time. Not only will this help you to stand out, but it will allow for better business planning in the long term.
Direct Debit collections can help meet the needs of a diverse range of businesses. If you collect regular payments from your clients, by setting up a Direct Debit you can reduce your administrative burden and ensure you are paid on time. Direct Debit collections are suitable for:
- Marketing agencies
- I.T. support firms
- Digital consultants
- And anyone who takes a regular payment for their services
Late payments are still one of the biggest barriers to growth for British businesses. According to Bacs (PayUK) 43% of SMEs spend a combined total of £6.7 billion in administration costs chasing late payments. Late payments affect a business’s ability to regulate its cash-flow, and without cash in the business it can be impossible to pay bills, suppliers or even the company’s employees.
As a busy accounting practice, you can set up payments in both variable and continuous amounts which is key especially if you are providing multiple services. Secondly, any ad-hoc payments that you as a business incur can be paid in a timely fashion via Direct Debit, for example if your customers wanted to purchase a one-off product and service at any stage you will be to process this through alongside other Direct Debits they have. And finally, if your prices were ever to increase as a result of inflation on an annual basis, you may simply communicate to your customers at any stage to inform them about this.