Why Your Business Needs To Stop Paying By Cheque

Why Your Business Needs To Stop Paying By Cheque

It’s been reported that cheques still account for a quarter of outgoing payments from all small businesses, micro businesses, sole traders and charities, which represents a vast amount of wasted time and money. It still amazes me how many businesses I see pay, and be paid, by cheque and, if you’re one of them, it’s time to stop. Firstly, I do understand why. For many, paying by cheque is just too easy. It’s in the drawer next to them, where they can just take it out, write it, sign it, and post it…done. If you’re in the middle of free banking, there’s no charge for it either. I’ve also heard some businesses use the fact that it takes a week for a cheque to clear, as a reason to pay by cheque. So, why should (in my opinion) all businesses stop paying by cheque? It can hurt your cashflow? You may think that it’s great that a cheque will take a day or two to arrive at the supplier by post, followed by up to 5 working days to clear, but what if they don’t bank it straight away? Maybe their office isn’t close to the bank, and they end up holding on to the cheque for a few weeks or a month. Of course, you don’t know when they’ll bank and it and have absolutely no control over it either. They may just bank it and the time you’d least want them to. It still costs money The cost of issuing a cheque can cost you 80p in banking charges, unless you’re in your free banking period. Even...
A Freelancer’s Guide To… Working From Home

A Freelancer’s Guide To… Working From Home

In April 2016, I took to twitter and freelance groups on Facebook to get a greater understanding of where my connections (across the UK) run their business from. The results* were: Home: 80% Serviced Office: 11% Coworking Space: 5% Other (coffee shop, library, etc): 4% Given that the large majority of these are freelancers, who work in a team of one, I can’t say that I’m surprised. Not when you consider how much working from home can save you money – in office and commuting costs – and is the most convenient and flexible of the 4 options. However, working from home is not all sunshine and roses, as many of the survey respondants pointed out: Andy Boothman, Creative Graphic Designer Director, said: Advantage: Incredibly short commute Disadvantage: No banter with colleagues Karen Cann, Freelance Video Editor & Producer, said that working from home was “Convenient but miss the camaraderie” One of my favourite responses came from Bassist, Singer and freelance Graphic Designer, Stewart Harris who said that these were his pro’s and con’s of working from home: Advantage: my cats keep me company and act as my office assistants. Disadvantage: my cats keep me company and act as my office assistants In Summary There clearly isn’t a one-size-fits-all solution, but it also doesn’t have to be one or the other. For example, if you prefer to work from home: Great. But what happens on the days (however infrequent) that you need a change of scenery? Test out working from an alternative venue, such as a coworking space**, even for just one day. Then see for yourself how that impacts your productivity...