Cash Flow Tips for Plumbing Businesses

Cash is king. You can be profitable on paper but still go broke if your clients don't pay on time. Here is how to fix your cash flow.

1. Seven-Day Payment Terms

Stop offering 30-day terms to residential customers. They should pay on completion. Use mobile EFTPOS machines to take payment before you leave the driveway.

2. Deposits for Big Jobs

If you are doing a bathroom renovation, take a 30-50% deposit upfront. This covers your materials so you aren't out of pocket.

3. Automate Debt Chasing

Use Xero's "Invoice Reminders" to automatically email clients when their bill is overdue. It's polite, persistent, and saves you having to make awkward phone calls.