Industry sector: Leisure

Night club: Cash from debtors


It's possible that you might have some account customers who you invoice at intervals, for example an organisation that hires a private room for functions on a regular basis. 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'.

Payment terms

You will have agreed with your account customers your payment terms, for example, 30 days credit. You might decide to offer a small discount for early payment.

Make an estimate of the amount of income you might 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.

Checkpoints