Tips for getting paid on time
One of the most important aspects of running your business is ensuring you get paid on time and in full. A failure to do so can lead to bad debts having to be written off and cashflow problems.
There are ways for business owners to protect their business from bad customers and bad debts.
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Follow up outstanding invoices promptly
Don’t assume your clients will always pay by the due date.
You should make sure your accounting system can generate overdue notices on a regular basis – it may be weekly, bi-monthly or monthly.
Your accountant or Sydney bookkeeper can help set this up for you.
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Hit the phones
Know the art of following up with a voice and not constant emails or overdue statements.
it is recommended to outsource this to your bookkeeper if you feel uncomfortable doing it yourself.
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Consider including a late payment fee on your invoices
You may think that it’s only large corporations that can charge a late payment fee, but according to Sue, more and more small businesses are beginning to implement late payment fees. It can be as small as $10.
It is important that you disclose the late payment fee on your invoices and/or contracts so that your clients are aware.
Ask your bookkeeper to help set this up for you.
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Learn to love credit card payments
How about instant payments, the minute you have completed a job?
That’s the beauty of having a credit card payment facility. This can be set up with your bank and/or credit card provider.
Whilst there are transactions fees involved with such facilities, these may well offset the financial and time costs associated with chasing overdue invoices.
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