Have Not Been Paid...

[icemaiden]

I work for a small business (three employees)of which I do the accounts for this business.

Last month I was only paid 2/3 of my salary and I have just been informed that it is unlikely that I will get paid the end of this month until earliest mid August.

As I do the accounts I know what is in the business account and what we are due in but people aren't paying us as they are having financial difficulties themselves.

My boss is relying on the sale of his property to pay us but there have been so many delays that I'm now really worried about paying my bills at the end/beginning of the month.

In order to keep the business going my boss has maxed out all his credit cards.

I guess what I'm really asking is what I should or could do? I have never been in this situation before.

TIA

[AB Editor]

Is the company winding down? It reads like it. Might be time to polish up the CV if you've not done so already.

It looks like you might be able to get a budget loan to cover some bills and the like: https://www.gov.uk/budgeting-loans (I did look for crisis loans, but these have been stopped/renamed!)

[stokemaveric]

oh dear icemaiden as ed says it might be wise to look for another job i own a business and i would not like to think that i have maxed out my credit cards and rely on selling my house to pay wages..the writing is on the wall im afraid...look for another job asap...you are working for nothing at the moment...

[DJHawkes]

what has been done to get the outstanding debts paid to the company? As the account person can you not chase them up with a bit more weight to the demands?

[AB Editor]

Dot, the way I read it was that Icemaiden does book-keeping rather than than acts as the "accounts dept" otherwise there's an excellent incentive to "lean" on the debtors!:)

Icemaiden - if you're wanting to be kind to your boss I would suggest looking for another job and offering to go part time.

I may have read into this too much at the beginning and actually it's a short-term cash-flow problem, and the business would be fine, if they could just get over the bump.

Do you need legal advice regarding collecting your remaining pay from your boss? Do you think he/she would be difficult about the missing 1/3 in the future?

[DJHawkes]

if icemaiden does the accounts and noone pays them the money owed there will be no acconts to do and so it's surely part of her job to send out the bills. if not then who does send out the bills, that person needs to get a little more serious.

[ummmm]

It's a small business so I assume that icemaiden does the debit and credit control.

With 3 employees how many are in the office?

[icemaiden]

Hi

And thank you for your replies.

Yes it is a short term cash flow as all our clients are invoiced in September and that's when the money comes in so finding another job now I think, would be unwise because a) I would never earn what I earn here anywhere else b) The hours suit me with my daughter c) could take me ages to find another job by which time in September monies will come back in.

I have chased all our remaining clients who owe money and all of them are now paying as little as £20 per month to clear their debt. This doesn't help us short term.

I will look in to budgeting loans Ed thank you.

[icemaiden]

AH. Not eligible for budget loans as I do not receive income related benefits.
:0(

[DJHawkes]

can't your boss get a tide over loan from his bank? how can he use credit cards, how poor management is that? why are your clients invoiced in september ? that's over a month away, get the invoices sent with a 28 day claus and get the money rolling,

[nannybooby]

Is he trading profitably ? The old adage a sale isn't a sale until its paid still holds true. Stronger tactics with the people who owe you money is the best answer. Talk to your boss and ask him what he wants to do about outstanding debits. I bit of county court paperwork might get some cash rolling in

[icemaiden]

It's a property management company so maintenance invoices go out in September (It's in their contract)
Boss has tried for a loan but has been refused.

Yes your right DJHawkes he really is a crap businessman!

[factor-fiction]

You say the invoices are sent out in September. Could you send them out before the end of this month and offer a discount of say 5% if paid within August?

[Peter Pedant]

If you are in accounts then you would know.....

The company is going under....

Cash flow is King and there are obvious cash flow problems

I feel sorry for your boss - I just as well say it - it sounds he is trading while insolvent and that unfortunately is a crime.....

I can hear a bell tolling....

[icemaiden]

Hi factor fiction. Thanks for your reply.

We do offer a 5% early payment discount if paid before November 15th. Unfortunately they cannot go out before September because we would not have Augusts accounts completed to work out the predicted maintenance charge for the following year.

[Watchingg]

The best thing for you to do is start looking for a new job. Now!

[AB Editor]

Tricky situation. Got any family silver you can pop on to eBay to take the edge off the bills?

Send the children up chimney's for a few weeks? It'll do them good :)

[icemaiden]

Lol! Thanks for the tips Ed!