Now is the time to get on top of your outstanding invoices.
While it’s easy to get caught up in tax planning, budgeting, and stocktakes, making sure your clients have paid what they owe is just as critical to your business’s financial health.
Unpaid invoices directly impact your cash flow and can leave you with a distorted view of your income and profitability for the year. If clients haven’t paid, your books may show strong revenue, but your bank account tells a different story. That can affect not only your day-to-day operations, but also your ability to reinvest, pay staff, or meet your own EOFY tax obligations.
Now is a great time to review your accounts receivable. Identify any overdue payments and follow up with polite but firm reminders. For larger outstanding amounts, consider picking up the phone—sometimes a personal approach can make all the difference.
It’s also important to reconcile your records and ensure that all payments received have been correctly allocated in your accounting system. This avoids discrepancies that can cause delays in finalising your EOFY reporting.
If you’re dealing with consistent late payers, it might be time to revisit your terms and conditions, or explore automation tools that send invoice reminders or require upfront payments.
Keeping your invoicing in order not only improves cash flow, it also gives your accountant a more accurate picture of your business’s financial position.
Need help cleaning up your books before 30 June? We’re here to help you reconcile your accounts, follow up on payments, and get your finances EOFY-ready so you can start the new year on solid footing.
