How do your invoices in order without ruffling the feathers of your customers and suppliers? Here are some tips:
Know your customers
You can easily get information from credit reporting agencies to analyse payment problems in keeping with historic trends. This way you can adapt your approach as necessary. For example, when the information tells you that your customer is recently failing in meeting payment deadlines, you can implement stricter terms of payment. Similarly, if your customer has been good in making payments, you don’t need to worry immediately if they get delayed for a few days.
Put expectations in writing
Give your customers official documents at the beginning of each project, so you don’t wait until payment day to talk to them with payment problems. It is not over the top to have Official Terms and Conditions in writing. It is a simple way to let your customers know the method of payment you prefer, the number of days your customer are allotted to pay, and the actions you will take when they are late in paying the bills.
Make it easy for customers to pay you
Sometimes the blame for late payment lies on you, specifically in the manner you prepare your invoices. Your paperwork must be accurate and easy to follow, so your customers don’t need to ask too many questions. Itemise each cost and include all your bank information and contact numbers, even if you think you’ve already given them to your customers or suppliers.
You may not want to damage the good working relationship that you’ve worked so hard to establish with your customers with uncomfortable talks about money. If you don’t have an accounting staff to do this task for you, talk to theirs. This will make sure you maintain your day-to-day relations while still collecting money on time.
Talk to a good accountant to help you send out invoices and collect payments on time. PJS Accountants offer the help needed to handle accounting, compliance, and strategic planning challenges. We provide a range of services that assist in reducing the challenges businesses face – so you can have more time to do what you do best, and that’s running your business effectively. Contact PJS Accountants for enquiries.