Industry sector: Leisure

Golf driving range: Cash from debtors

Although most of your customers will pay you at the time they use your range, it is possible that you will have some account customers who use the driving range on a regular basis and who you invoice at regular intervals. These may be golf clubs that do not have their own practice facilities, independent golf coaches who use your facility on a regular basis, schools and colleges. After account customers 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'. It is likely that, if you have any at all, your income from account customers will only be a small percentage of your overall income.

Early settlement discounts

You may decide to offer your account customers a small discount for early payment so as to encourage them to pay promptly. This can help with your cash flow.

Consider what steps you will take to recover any overdue amounts and whether you will charge interest on these. Consider terminating relationships with customers who are habitual late payers.

Make an estimate of the income you might receive from account customers and enter that amount in the month in which the money will be received.

Your business stationery

Ask your local printers to produce some invoices for you for your account customers. They will be able to advise you on layout and style. You must have your VAT registration number on your invoices if you are registered for VAT.