Receiving invoice payments on a timely basis is essential for any small business owner. Today, technology is changing so fast. Therefore it’s crucial to work in a well-organized and competent way to cope up with these changes. This way, your small business will receive invoices quickly.
Most of the small businesses usually collapse because the owners go broke. To avoid this challenge, we advise that you put these four simple tips into practice.
Before you start serving your new client, make sure that you spell out your terms and conditions as clear as possible. To make this easier, seek for written proof of your agreement to show the payment deadline dates, amounts due, and any other crucial information.
Also, you need to clarify what you’ll be doing, the amount you’ll be receiving, and when the payments are due in your terms and conditions. Moreover, ensure that you add late payment fees or early payment discounts in case you offer them.
You should make clear your payment deadline dates even if you decide not to include the penalties and rewards. Remember that most customers usually pay two weeks into deadlines. Therefore it’s essential to place a two weeks lead deadline to match the time that you need to receive the invoice.
Electronic invoices are better than paper base invoices since they’re sent directly to the customer. This reduces the chances of losing it. Another advantage is that they can be customized and edited easily. Additionally, they can be sent via email where you can include a ”pay now” button for the clients to make their payments directly into your businesses’ bank account.
Always send your invoices immediately for faster payment.
Outstanding invoices tend to grab the attention of the customers. This increases the chances of them being added to the top of the customer’s priority list. Stand out by adding your contact details, business logo and branding, and any other essential information. Also, ensure that you highlight or bold crucial details like the amount due and payment deadlines.
Many reasons can accompany delayed payment. A customer can at times forget if they haven’t made any payments. It’s, therefore, essential to come up with a polite payment reminder message.
You can use electronic invoices if you have one to set up automatic reminders for late payments. Make sure to include the terms and conditions together with the extra charges of late payment.
By putting these simple tips into practice, you’ll be able to notice a change of how quickly you receive payments from your small business.
Stand out from your competitors by using ACH payments. These Payments quickly process any transactions electronically eliminating any need for paper check, and it’s more affordable compared to a credit card. If you’re collecting from clients regularly, then you should consider these payments because you’re allowed to pull directly from the clients’ bank accounts. Remember that this only happens with signed permission.
If you’re seeking more insightful information on how to receive quick payments from your small business, please contact us. Our loyal professionals can help you meet your financial advantage. Also, ensure that you check the other parts of our blog for more details.
Tax Tips for the Self-Employed
529 Savings Plans
The Advantages of Being an S-Corporation
Understanding Your Balance Sheet
How (And Why) to Create Your Business Budget
How to Invest Your Business Profits