Are you struggling to keep your cash flow steady due to receiving late payments?
You’re not alone. In fact, did you know that more than a third of all invoices end up being paid late*? It’s a staggering figure that can have serious implications for businesses, especially smaller ones.
For many of us, chasing up unpaid invoices can feel a bit awkward, or it’s one of those tasks that keeps getting pushed back. But here’s the thing: if you’ve delivered your end of the deal, you’re entitled to be paid on time and in full. So, let’s talk about how we can make that happen.
1. Set clear terms from the start
Transparency is key. Have an open discussion with your clients about payment terms and requirements right at the beginning, including your late payment charges. Then put it all in a legal contract to ensure everyone’s on the same page.
2. Double-check your details:
Ever chased up an invoice only to realise it was sent to the wrong person? Before hitting send, take a moment to verify that you have all the correct details for your client. Make sure their name, address, and any other necessary information are accurate. It’ll save you from unnecessary delays down the line.
3. Stay on top of invoicing:
It sounds obvious, but sending out your invoices on time is crucial. After all, your client can’t start the payment process until they have the invoice in hand. Set aside dedicated time in your schedule for invoicing tasks and consider using templates or accounting software to streamline the process. With today’s technology, there’s really no excuse for delays.
4. Communication is key:
Don’t just sit on an overdue invoice and hope for the best, contact your clients and start a conversation. Most accounting software platforms offer handy features for setting reminders or sending statements at regular intervals. But don’t rely solely on automated message, sometimes, a personal touch goes a long way.
5. Have a plan for debt recovery:
Unfortunately, even if you’ve done everything right, some clients may still be late in paying. That’s why it’s essential to have a clear process in place for handling overdue payments. Know your rights as a business owner and be prepared to take action if necessary.
If managing invoices feels like a daunting task, why not consider outsourcing it to Assistopia? As a Virtual Assistant can take care of the administrative side of things, leaving you free to focus on growing your business. After all, ensuring timely payments is not just about keeping the lights on, it’s about building a sustainable future for your business. Contact Assistopia for a free, no obligation chat on they can support you.
*Source: Xero.com