Recent research by Dunn and Bradstreet shows it takes an average of 56 days to get your invoices paid, and that less than half of invoices are paid within the “standard” 30 day terms. That’s a lot of valuable cash locked up in unpaid invoices.
One quick fix for this is setting payment terms for your invoices that suit the way you do business and sticking to them. And that may include setting terms that aren’t the traditional 30 days.
Setting your default payment terms for an invoice in MYOB Essentials is easy. All you need to do is decide what you want your default payment terms to be, and make sure both you and your customer are aware of your terms before you start doing business with them. That way there’ll be less hassle when you invoice for your work.
Setting terms in MYOB Essentials
Set global payment terms from the Invoice and quote settings page in MYOB Essentials, from the Payment options tab.
All invoices you create from that point on will have your default terms.
You can set up your invoices to be due a number of days from invoice date, a number of days from the end of the month, or you can select Due on and enter a due date when you create the invoice.
You can change invoice terms on the fly for individual clients when you create an invoice, so you can customise payment terms for your customers as you create the invoice.
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.
MYOB Essentials makes is easy to keep on top of late payers. Your dashboard tells you how much you’ve invoiced and how much of that is overdue.
Click the invoices overdue link to open a list of the overdue invoices. You can then easily follow up with a phone call or resend the invoice.