Industry sector: Consumer services

Male grooming: Cash from debtors

'Cash from debtors' means any income - including VAT - you receive from account customers that you send an invoice to, usually at the end of the month. After they have been sent an invoice but before they pay, they are your debtors. When they pay you, the payment is referred to as Cash from debtors.

Decide whether you will offer account facilities, and if so who will be eligible. Male grooming salons don't usually have account customers, but you might decide to offer account facilities to certain people who use your services very regularly.

Payment terms

If you do decide to offer account facilities to anyone, make sure that you agree payment terms with them. You might, for example, require all accounts to be settled on the last day of the month.

Make an estimate of the amount of income you are likely to receive from account customers each month, including VAT. Enter the amount in your cash flow in the month in which the money is due to be received.

Consider what steps you will take to recover any overdue amounts and whether interest will be charged on these.

Your business stationery

Have some invoices printed for your account customers. A good printer will be able to advise you on layout, style and even content. If you are registered for VAT you must include your VAT registration number on your invoices.