The easiest way to ensure that your business is receiving the payments from invoices without delay is to remain transparent with your customers throughout the process. Getting an invoice paid on time starts with making it easier for your customer to pay.
Create Detailed Invoices
Create for your customers an invoice that includes the essential details and information about the job or service you have provided and the additional information such as expenses that they might want to be included. Anticipating these potential additional details may shorten the time it takes for your customers to pay.
Send Prompt Invoices
While it’s fresh in your customer’s mind, send out the invoice as soon as the work is completed to ensure that they are aware of what they owe. There may be alternative methods to invoicing that you can use for your customers, such as electronic invoicing software or in-person with a mobile EFTPOS machine.
Invoice In Stages
Consider a phased approach to invoicing, particularly if your work is being conducted over extended periods of time. Splitting it over multiple payments allows the money to continue to flow in and could offset some of the risks to your business.
Allow Electronic Payments
Taking “pay now” credit card transactions can assist in speeding up payments from your customers. If sending your invoices electronically, consider adding a payment-add on option (such as Stripe or PayPal).
Make Payment Terms Shorter
Invoices with shorter payment terms get paid more quickly, with more asking for payment within two weeks instead of the previous norm of thirty days. Discuss payment terms with your customers long before you get started to avoid confusion later on.
Put Systems In Place
Chasing down payments takes up valuable time and can be stressful. Consider employing a bookkeeper or accountant to assist you with following up on those overdue invoices or set up automatic reminders in your accounting software to be sent to customers as an invoice nears its due date.