One of the most frustrating parts of running a small business can be the way some clients take ages to pay.
It's not that late payments aren't a problem for large business, but when you're running your own show it's hard to avoid taking these debts personally
10 invoicing tips to get paid sooner
1. Accurate details
You need to know who you’re dealing with. If it’s a large organisation and the accounts department is at another branch you’re simply going to cause a headache for all involved if you send it to the wrong place. Get the info right up-front, and you won’t have to worry about it later.
2. Payment terms clarified first
Lay all costs out beforehand (including any penalty fees) so there are no surprises or cause for dispute.
3. Payment terms
We know you probably haven’t missed a payment date, but the chances are you’ve got clients who do—regularly.
Work that into your payment terms, so if you want the cash within a month, give them a fortnight to pay you. That way even if they’re a few days late, your cash flow is still looking good.
4. Invoice ASAP
The sooner you send the invoice, the sooner the clock starts ticking down until payment day.
If it’s a regular transaction, simply set up a recurring invoice to be sent out—so you never have to forget about it again.
5. Delegate the work
Online accounting lets you invite your field staffto your file, so give them limited access and let them quote and invoice while they’re on the job. They won’t have to hike back to the office at the end of the day or send a memo to accounts and will love you for it.
6. Make your brand stand out
Customize your invoices so that it’s clear who it’s from. Add your logo and branding—if your customers recognise you and what the invoice is for, it’s less likely to get buried beneath the rest.
7. Add overdue fees for late payment
Whether you carry through with them or not, it’s a reminder to your customers that they don’t want to miss the date. Be sure to have agreed on these beforehand though.
8. Encourage recurring payments
Consider adding an invoice admin fee, and offer to remove if customers switch to a payment plan. This way you can set up a recurring invoice that gets sent out automatically, which is one less thing for you to worry about.
9. Follow up with statements
Automatic statements save a lot of leg work.
Set them up to go out after 30, 60 and 90 days with increasing urgency implied in the messaging, or whichever schedule suits your business cycle.
10. Don’t be afraid to pick up the phone
Automated email correspondence is great, but sometimes it’s best to get in touch. There may be a legitimate reason why a payment hasn’t come through.
In all instances be human, be fair. We’re all in small business together.
1. Accurate details
You need to know who you’re dealing with. If it’s a large organisation and the accounts department is at another branch you’re simply going to cause a headache for all involved if you send it to the wrong place. Get the info right up-front, and you won’t have to worry about it later.
2. Payment terms clarified first
Lay all costs out beforehand (including any penalty fees) so there are no surprises or cause for dispute.
3. Payment terms
We know you probably haven’t missed a payment date, but the chances are you’ve got clients who do—regularly.
Work that into your payment terms, so if you want the cash within a month, give them a fortnight to pay you. That way even if they’re a few days late, your cash flow is still looking good.
4. Invoice ASAP
The sooner you send the invoice, the sooner the clock starts ticking down until payment day.
If it’s a regular transaction, simply set up a recurring invoice to be sent out—so you never have to forget about it again.
5. Delegate the work
Online accounting lets you invite your field staffto your file, so give them limited access and let them quote and invoice while they’re on the job. They won’t have to hike back to the office at the end of the day or send a memo to accounts and will love you for it.
6. Make your brand stand out
Customize your invoices so that it’s clear who it’s from. Add your logo and branding—if your customers recognise you and what the invoice is for, it’s less likely to get buried beneath the rest.
7. Add overdue fees for late payment
Whether you carry through with them or not, it’s a reminder to your customers that they don’t want to miss the date. Be sure to have agreed on these beforehand though.
8. Encourage recurring payments
Consider adding an invoice admin fee, and offer to remove if customers switch to a payment plan. This way you can set up a recurring invoice that gets sent out automatically, which is one less thing for you to worry about.
9. Follow up with statements
Automatic statements save a lot of leg work.
Set them up to go out after 30, 60 and 90 days with increasing urgency implied in the messaging, or whichever schedule suits your business cycle.
10. Don’t be afraid to pick up the phone
Automated email correspondence is great, but sometimes it’s best to get in touch. There may be a legitimate reason why a payment hasn’t come through.
In all instances be human, be fair. We’re all in small business together.