Getting Behind on Bills

This happens to all of us at one time or another and it's probably unavoidable. For your business though, it can be a little more serious and you need to watch it more closely. If you ignore the fact that you're getting behind on supplier bills, it will only get worse and maybe out of control. Keep a physical and/or computer file of all invoices received and date them. Invoices can come in the mail, fax or email. Once they are received and dated and approved you need a system to keep track of the oldest or most important ones and when they are due.

Most business computer accounting programs will do this for you and bills should be entered as soon as possible. If you're using a manual system have different files for suppliers and expenses. An if you have a major supplier make a seperate file for them. As cash flow comes in you can decide which ones are the most important and pay those first. If you can't pay a bill in full a partial payment will buy you a little extra time so send it.
More on paying bills slowly in chapter 5 of the book "When the Shit Hits the Fan" available at bookstores and www.amazon.com