As the budding entrepreneur of a growing business, issues with payments can make or break your enterprise. A consistent and reliable flow of income is essential for keeping your doors open, your services available and keeping the background facets of your business running smoothly. Unfortunately, not all transactions are as straightforward as we’d like them to be, and often entrepreneurs spend countless hours tiptoeing around individuals, suppliers or other businesses who are late with their payments and not keeping their contractual promises.
There are multiple reasons why invoices are left unpaid such as:
- Your payment terms aren’t clear
- Customers have cash flow problems
- They’ve forgotten or deliberately ignored your invoice
And while understanding these reasons is insightful, it doesn’t help you get your payments back on track. So, with this in mind let’s explore some straightforward ways you can put a stop to payment chasing and focus on the progression of your enterprise.
Invest in accounting software
Did you know that accounting software won’t just help you manage your financial obligations, it can also help you create, send and track your invoices too? With the right accountancy tools at your side, entrepreneurs don’t only get paid on time, but they also get paid faster! As businesses are more likely to respond to a business that takes pride in its branding, creating high quality, accurate and professional-looking invoices is a good place to start.
The ability to automatically send these fully customised invoices means your payment prompts will be received at the same time each month, creating a routine that is easy for clients to adhere to. Plus, the tracking facility means entrepreneurs can see if these invoices have been viewed and paid by checking the status of these invoices at any time. Protecting your cash flow is easy when you have the right software to support you.
Set clear payment terms
Clear payment terms can clear up any confusion before your invoice is even released. You can make these terms as straightforward and jargon-free as possible to reduce potential loopholes or excuses of confusion. Make them clear when you sign a deal, have them listed on your website and again on your invoices.
Build rapport with your clients
Building relationships and networking is an essential part of running a successful business. This approach can also help you to get paid faster and ensure that your clients are taking you seriously. A simple “thank you for your custom” on the bottom of your customisable invoices can make a huge difference. And once invoices have been successfully paid, consider sending a “thank you” email or note in the mail to sweeten the deal and to continue to build rapport.
Increase the number of payment options
When making payments is easy, you’ll find that clients will pay faster. So, offer as many options as possible, whether it’s cash, PayPal, credit card or the tap of a smartphone, keeping convenience in mind can help you get paid faster.
Final thoughts…
Utilising accountancy software with access to customisable and trackable invoicing will help put a stop to those late payments. Freeing up more time for you to focus on other areas of your business.