Industry sector: Transport

Coach firm: Cash from debtors

Account customers are invoiced at regular intervals, say fortnightly or monthly. After they have been sent an invoice, but before they pay you, they are your debtors. When they pay you, the payment is referred to as 'Cash from debtors'.

If you undertake contract work for local authorities, public bodies, industry and so on, you will probably invoice them for work done monthly or four-weekly. It may be that you also invoice customers for private hire work if you have not managed to collect any money due on the day of travel.

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

Also enter any amounts you might receive from:

  • subsidised local bus services (paid in arrears monthly or four-weekly)
  • bus service operators grant (formerly fuel duty rebate) (paid at mid-point in each quarter)
  • concessionary fare reimbursement (paid in arrears monthly or quarterly)