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Transcript
I became a director of a company many years ago that had a month end invoice routine. It was that way because there were so many invoices to produce that batching on one day became the norm and it was done by one of the directors who was time poor.
It may have solved a workload problem but it created another one in terms of cashflow.
It also highlighted poor delegation but that is a whole other discussion.
Because the invoices were sent on the 30th of each month and customers had 30 day credit terms, you couldn’t start chasing for 30 days to get the money in. So if a customer had been serviced or received goods at the beginning of the month, they were effectively getting 60 days credit. [Read more…]
