Getting money into your company for the work you do is the most crucial part of keeping your business going.
In this series of blogs we'll look at how to make it easier for your clients to pay you, giving you the benefit of having better cashflow.
Set your payment terms early and stick by them.
Recent research by Dunn and Bradstreet shows it takes an average of 56 days to get paid, and that less than half of invoices were paid within the standard 30 day terms. That’s a lot of valuable cash locked up in unpaid invoices.
Setting your default payment terms for an invoice in AccountRight is easy. Go to Setup > Preferences and then click Terms.
There’s a lot of different options available for terms in AccountRight. Don’t be afraid to set your own, rather than accepting one of the defaults.
Here’s an example of how to set up 14 days from invoice date as your terms.
There’s also the ability to give a discount for early payment, or charge fees for late payments. These can also be helpful ways to encourage clients to pay you on time.
Follow up on late payers
Even with the best planning, there will be customers who don’t pay. Stay on top of them, and follow up with a polite phone call, a day or two after the due date.
With AccountRight you get better insight into your customers. The important information such as who pays you late, how much all your customers owe and how much of that is overdue is right at your fingertips, when you need it. Each customer card has the customer’s balance, what’s overdue and how long they usually take to pay.
This information is also pulled into Business Insights, so whether you’re a chart lover, or a figures analyser, you’ll be able to stay on top of your incoming cash.
Best of all, you can dig into this information, by clicking on the blue arrows, right down to the invoice itself. This makes it super easy to resend the invoice.