Getting paid on time

General considerations regarding getting paid on time

It is important to remember that your invoice payment terms can set the tone for the whole transaction with your client or customer.

Improve your chances of speedy payment by invoicing swiftly, communicating clearly, and prompting clients when they owe you.

Obtaining all the essential information about the job is key to creating detailed invoices. These are details like business information, the amount owed and payment information.

Also consider if there are any other details that your customers might want included on their invoice, such as expenses.

Predicting these requests can go a long way in cutting down the time it takes for your customers to pay their invoices.

Setting the invoice due date

The most important payment term is the due date.

Traditionally businesses used to always give 30 days, but this is a legacy from the old days of mail and payment by cheque. Now there is no reason to wait that long, as most payments are now electronic.

If you work hard and meet your clients’ deadlines, there’s no reason why you shouldn’t be paid within a week.

According to a study done by Xero, close to 75% of invoices ask for payment within 2 weeks, so beliefs are changing.

Don’t delay your invoicing

Never put invoicing off, all you are doing is pushing back your payday. Instead, look for ways to speed up the process by using templates and sending online invoices.

Don’t wait until an invoice is way overdue!

Don’t wait until an invoice is way overdue before reminding a client that they owe you.

Set up an automated process that sends the client a friendly email as the due date approaches. Keep following up past the due date if the invoice remains outstanding.

The same Xero study discovered that in the first 25 days after payment is due, overdue invoices with prompts get paid an average of four days quicker than those without.

Pick up the phone

If clients don’t respond to emails or messages, this is when you need to pick up the phone.

This is obviously not the nicest part of being a business owner, but it will help you stay in business.

Need more assistance?

The team and DNACA are well qualified to help you put processes in place to ensure you are  getting paid on time and receiving the all-important cash flow you need to keep your business going. Get in touch with us today to see how we can assist you.