Keeping control of your cash flow is one of the most important aspects of any successful business. You can waste hours of your precious time each week if you don’t go about it the right way. We’ve put together 6 easy to follow steps that can help you get paid on time, so you can concentrate on building your business, not just keeping it afloat.
1. Agree payment terms and stick to them.
Have simple, easy to understand payment terms with your customers so you’re all on the same page. Once they’re down in black and white, provide them a copy and make sure your customer understands them. Now you must make sure you stick to them.
2. Develop better relationships with your customers
Getting to know your customers has more benefits than just getting paid on time. It increases the likelihood of return business and will also likely bring in lots of new business.
3. Send out invoices ASAP
Invoicing your customers quickly means you get paid quicker. It sounds silly to say it, but many fail to do it. It also makes it easier to stick to those payment terms you have just issued.
4. Address the invoice to the right person
Sending the invoice directly to the person who pays the account speeds up the whole process for you and your customer. Nobody likes getting a bill, but they’ll be thankful for not wasting their time.
5. Keep your invoices simple
Make sure your invoices are easy to read and understand. Don’t fill it with unnecessary information. Phone calls to clear up a misunderstood invoice wastes yours and their time.
6. Chase up overdue invoices quickly
Call or email customers with overdue invoices promptly and regularly. Remind them of your payment terms. It’s important to always remain polite and professional but be firm.
There definitely is an art to getting paid on time and you must work on a system that is right for your business. It will take a little trial and error, working on a payment flow that fits, but over time you will work out what works best for you and your business.