Simplify Your Accounts Receivables
Few things in business are more frustrating than a client who won’t pay. Not only do you not have the money you are owed, but you also have to spend your time and energy trying to figure out who owes what and when they will pay. If you’re frustrated by unpaid invoices, it is past time for you to streamline your accounts receivables process.
On average, it should take you less than one hour each week to handle this part of your business. If you’re spending more time than that, consider giving some of these tips a try:
Get Invoicing Software
If your business relies on invoicing in any way, you know how much time it can take to put one together. Luckily, there are software programs specifically designed to streamline your invoicing. If you send out a few invoices a week or just hate working in excel, you can invest in one of these programs and make your life easier.
Make a Great Invoice
No matter what invoicing software you choose, you will have to customize some elements. If you create a professional invoice, you can simplify your accounts receivables just by making clients more likely to pay.
First, be sure your invoices contain every piece of information the client may need. For example, you should include your address, how to pay, and an itemized list of the charges. This information reduces the chance of needing to answer follow-up questions or re-doing your invoice.
Next, be both flexible and transparent on the date you expect payment. It can be difficult to walk this line, but doing so can help you get payments on time. First, make sure that the invoice states the due date clearly. Some invoicing software allows you to set this section to fill in the date automatically. Next, be sure to give clients some wiggle room. For example, you can set the due date for 21 or 30 days after the invoicing date.
Stay on Top of Things
Sometimes, invoices just fall through the cracks and clients completely forget to pay. That’s why it’s essential for you to organize your billing process. For starters, you can set a specific time each day or week in which you go through invoices.
You should also not be afraid to remind clients gently. Remember that this is money that they owe you. There’s no shame in kindly telling a customer that payment is due. You can even write up a form email to send every time an invoice becomes overdue.
With these steps, you can bring some simplicity to your accounts receivables process and get some of your time back.