Getting paid on time is an ongoing challenge that can make or break your small business.Often even your best customers may be slow to pay due to bureaucracy or other issues. Here are 5 steps you can take to help speed up payment and maintain smoother, more predictable cash flow for your business.
How your invoices look really matters. If your invoices look less than professional, that can reflect on how customers perceive your business. Some clients might feel they can push your payments to the back of the line.
In addition, the design of your invoice can encourage faster payment by directing the recipients’ attention to critical information, such as the amount due and due date, where and how to pay, what the invoice is for, and whom to contact with questions.
Your clients should never be surprised by anything on your invoices. Be sure that deliverables, payment amounts, and payment terms are all agreed upon at the beginning of the project or when the order is placed, and that you have a signed agreement confirming this information.
It is all too common for business owners to finish their work for a customer and neglect to submit a bill. The faster you invoice, the faster you will get paid. Make it a habit to invoice clients immediately upon delivery of your product or service. An on-time delivery of a project deserves an early payment of invoice, but giving the freedom to the client, to pay up late, naturally delays the payment. It gives the client, time to overlook the invoice.
If you’re still mailing out paper invoices and waiting for checks to come in, stop. Instead, start invoicing customers online and accepting payments electronically. For example, if you use an accounting system like Waveapp or Paystack .it’s easy to send online invoices. Many customers actually prefer this method, since it saves them from writing checks and spending money on postage.
With an online invoicing software, you have the options to get paid on time. Check all the features :
“We spend a lot of time in sales schmoozing the person who signs the purchase order, but absolutely no time getting to know the person who is going to cut the check,We suggests sending a handwritten thank-you note on a fairly regular basis. The next time there is a bottleneck in the payment schedule at your client, the accountant will remember you. “When they see your invoice come through, you are not just another vendor,” she says. In fact, offering a “please” or “thank you” when you send your invoice can increase your chances of being paid by as much as 5%.