When you buy supplies on account instead of paying cash there and then, your suppliers are your creditors until you pay them. Enter in your cash flow forecast the payments that you will make to your creditors (including VAT) in the months in which you will pay them.
You are likely to make purchases from specialist suppliers of:
- essential oils
- carrier oils
- base lotions and bath products
- consumables such as disposable couch covers
Some of these products may be intended for resale to clients rather than used in the course of treatment. You might also need specialist products for any other complementary therapies you decide to offer.
The Aromatherapy Trade Council website contains details of members who supply products to the aromatherapy profession. (Many also sell direct to the consumer.)
Setting up an account
For convenience it is best to set up accounts with your main suppliers, if they are prepared to offer you credit facilities. To do this you may be asked to provide bank and trade references. Until the account facility has been granted you will have to pay for your order at the time you place it. This is known as paying on a pro forma basis.
Once your account has been set up you will be invoiced at regular intervals and expected to pay within a certain number of days of receiving the invoice.