If you feel like you are always waiting for the next big cheque to arrive to keep your business afloat, why not consider a free online invoicing service to help speed up the process. Receivables won’t help improve your cash flow if they are not consistently paid on time. Sometimes making the right moves right from the beginning will improve your chances of getting paid sooner.
Send Invoices Immediately
If you use a client billing application, it will only take minutes to enter and send an invoice directly to the client as soon as the work is complete. Since the software can be used from anywhere, you don’t need to wait until you get back to the office to process the invoice. Most online invoicing programs allow you to email it directly to clients, so there is also no time wasted waiting for it to arrive in the mail.
Confirm the client has seen the invoice
This might sound like it wouldn’t be an issue for most companies, but paperwork can get lost in the mail and easily misplaced around an office. Emailing it directly to the client, offers you the ability to receive a read receipt, so you know the client has seen it. When a client confirms a read receipt, they are in essence accepting that the debt is owed and will be paid on time.
Follow-up with a Professional Reminder Notice
Free online invoicing applications can be set up to send automated reminder notices. This will keep the invoice fresh in the client’s mind and reminder them of when it is due. It doesn’t guarantee it will be paid sooner, but it should ensure that it is at least paid on time. This will also confirm that the client is aware of the debt, otherwise they would be questioning why they received the notice.
Offer Incentives for Early Payment
Every business is trying to save money and your clients are no different. If you offer them a small price discount (1-2% of the total invoice) for paying within 15 days, it should inspire them to cut a check immediately, so they can take advantage of the discount. You can also negotiate terms that include interest or penalties for late payment.
Run Weekly Receivable Reports
By reviewing your account receivable reports weekly, you can catch past due invoices sooner. Sometimes it may require a difficult phone conversation with the client, but you can first prompt them with a gentle and professional notice that the invoice is now overdue.
Getting paid on time or sooner is critical to every businesses’ success. They can’t handle their personal expenses, professional expenses, and operating costs if they are not receiving payment for their hard work. Try these techniques and free online invoicing to see how it can decrease the amount of time you are waiting on receivables.