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Acupuncture practice: Payments to creditors

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 will be making purchases from specialist suppliers of acupuncture needles, accessories and consumables and products (such as herbal medicines) for use in any other therapies you plan to offer.

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.

Discounts from suppliers

You may be offered, or be able to negotiate, various discounts from your suppliers. For example, you may be offered a discount when you buy disposable acupuncture needles in bulk.