In this modern, always on demanding world your customers are busy people, we’ve got seven tips to help you get paid quicker by making it as easy as possible for them to pay you.
Guess what? The easier you make it, the quicker you get paid. That makes for happy cash flow, happy bank balance and a happy customer who avoids those pesky invoices reminders.
With so many payment service apps available which are dead easy to set up, you should be serving up your invoice on a plate for your customer to pay as quickly as possible, and at a time that suits them.
Here are 7 tips to help you get paid quicker
1. At the very least, include the agreed payment terms and your bank details on your invoice. We pay many invoices for clients, and it’s a fact that if there are no bank details on an invoice, it goes to the bottom of the pile for payment as it’s hassle to hunt down the details. The last thing you want from your customer is a cheque in the post, because if you ever receive it, you then have to find a bank to pay it into and then wait 4 days for it to clear!
2. Email your invoices to your customer. If you use accounting software such as Xero, you can include an online link to the invoice which enables you to track whether your customer has received and viewed it. This also gives you an audit trail so you know exactly when it was sent, received and viewed. There’s no hiding place for the customer! You also reduce overhead by saving the postage.
3. Include a payment link on your invoice so the customer can open the invoice and click PAY NOW to be taken straight to an online payment service (such as PayPal or Stripe to name but a few) and pay your bill straight away. You can also include buy now and payment buttons on social media sites.
4. Carry a mobile payment device such that if you deliver a service in the moment or a client wants you to pay them there and then, you have a card machine available. You can get a PayPal card reader or sign up for other mobile card readers such as iZettle, SumUp and Square. There are no monthly fees or contracts, just the cost of the reader plus transaction fees based on a % of the payments taken.
5. Set up automated email reminders at various intervals, a week before the due date, on the due date, 7 and 14 days after the due date. This keeps your invoice front of mind with the customer encouraging them to pay you at the earliest opportunity. This is cashflow 101 and once it’s set up you can forget about it.
6. Consider changing your pricing model to a monthly subscription basis where possible. This can help smooth those peaks and troughs in your cash flow and it also helps the customer with their cash flow paying a regular subscription each month rather than having to find a lumpy amount in one go. Apps such as GoCardless and Stripe make setting up direct debits and subscription for customers a cinch. A good example of this is in the accounting profession, most accountants now charge a monthly fixed fee for their recurring services rather than an annual one off fee when the work is done.
7. Finally, don’t wait until the end of the month to raise your invoices, if you have completed the work and your terms are 30 days from the date of the invoice, send your invoice the same day to ensure you get paid in some cases 30 days quicker. Send your invoice on the go from your mobile device using Xero or other online software app once you have finished your work / delivered your service.
Would you like to take our cash flow challenge? Email email@example.com with “yes, I want the cash flow challenge” and we’ll send it right over to you.
An evirtualFD can help you implement any or all of the above alongside a review of all your other systems and processes to ensure your business is streamlined and is running as efficiently as possible. Take us for a test drive, £995 upfront fee and we don’t deliver savings of at least that for your business, we give you your money back, guaranteed, no quibbles!