So it’s true. Accountants do run a tight ship and manage their cash flow better.
In the last few blog posts, we uncovered the hidden secrets of getting paid faster (see this blog, this blog and this blog). We had some great advice from Steph at Growthwise, Noel at My Accounts, Brad at XO Accounting.
We wondered if accountants practiced what they preached, or is it a case of plumbers have leaky taps? We discovered that accountants are better at managing their cash flow by collecting their invoices faster than the average Joe / Joanne.
On average, accountants offered their clients 12 day terms, and collected payments within 28 days. This rate of collection, is a whole 9 days faster than the general average, and they only offer 2 days less terms compared to the general average.
If you are an accountant, how do you stack up? Do you get paid even faster? If you do, maybe this is another value prop you can sell in your next client pitch to win new work - You know how to implement strategies to improve your client’s cash flow.
If your practice collect payments slower than the average, maybe you should think about your leaky tap!