4 Quick Ways to Get Clients to Pay Their Invoices Faster
"Excuse me, did you receive our invoice?"
One of the most awkward situations in business is having to remind clients about late payments on an invoice. It's even harder to request payment without adding conflicts or disrupting the flow of business.
When our clients first come to us, many of them are facing this very problem. We work with them to streamline their accounting and invoicing processes by developing a system for invoices to be sent directly and on time.
If you're looking to get paid sooner try implementing the quick tips when working with your clients.
From the very beginning, you want to ensure that your clients know what their costs will be and what their payment schedule will look like. It’s essential to have a written agreement between you and the client that clearly outlines terms, deadlines, and fees. Establishing clear expectations from the start can deter from late payments due to confusion.
Offer Incentives for Prompt Payment
Offering small incentives for timely payments will speed up the process and help build customer loyalty. The discount can be a percentage of the total invoice amount, which often adds up for clients as a cost advantage. For example, a 2% discount on early payment may entice a client to pay the invoice earlier. Everyone knows they are going to have to pay at some point, but if knowing making the payment when they receive the invoice will give them an additional benefit, they may do so.
Form a Solid Relationship with the Client
It's hard to work with clients daily and not form some relationship, so focus on developing excellent communication from the beginning and work towards understanding each other’s side of the partnership. So if a payment becomes an issue, a stable relationship can provide both parties a way to work through it and reach an agreement without fracturing the bond. Maintaining positive relationships with clients may even prevent issues from ever arising.
Consider a Cloud-Based System
Cloud-based accounting systems like QuickBooks and Xero allow you to create, edit and send invoices from anywhere. Ideal for those times when a client asks you to revise an invoice on the fly or send them another copy of it to get paid. Even if you are on vacation and get the request, a cloud-based solution provides an easy way to respond, so there is no delay in payment.
There are a variety of small factors that add up to improve the speed in which you receive payments. If you’d like some expert advice on how to do so or how you can improve cash flow, reach out, and let our team of accounting experts show you how simple invoicing can be.