Page 66 - Paulisms: Gold Nuggets for Small Business

aware that some clients close their books off late in the month for progress payments – this can be a stalling tactic and the reason why some companies aren’t paying you. For example, if accounts are not received by the third day of the month, you would have to wait until the following month for payment. Companies have ‘the power of time’ to be able to control that – possession is 9/10ths of the law. Make sure you get your progress payments in and do them promptly.
Paulism: At the end of the month you must draw a financial line in the sand. On one side is the month closing: consider the work done and get as much invoiced out as possible for the costs you’ve incurred in that month, know what your stock is, know what your debt is and know where your creditors are. On the other side of the line is the new month: get a P&L by the first week of new month.
3.1.5 Days in a month
How many days are there in the month?
I often ask people how many ‘real’ days there are in the month, and
they give me the exact number. So, I ask again, ‘From a business point of view, how many days are there in the month, because it really does affect your turnover and profitability.’
I remember one year in April, with Easter and Anzac Day plus weekends, that there were only fourteen working days in the month. This