In the midst of a busy workload, your invoices can get buried in your clients’ inboxes. While the first time is understandable, you shouldn’t let this become a habit as it could severely damage your business’ cash flow.
Using an accounts receivable software can help you manage your client billings and collect your business payments faster. To help you further in getting your invoice prioritized and paid on time, here are some tips we’ve collected.
Send your billing ahead of time.
Mail your billing statements on a regular basis, and set schedules to keep them fresh on your clients’ mind. Doing so will increase your chances of receiving your payment on time, as it gives your clients a reasonable grace period for them to finalize their payments on top of their existing workload.
For example, you created design mock-ups for a client. Send your billing statement to them a few days before you turn over these mock-ups, so your invoice is still on top of their mind before they use the service you rendered.
Tie your collections with milestones.
One way to remind your client about a pending payment is to tie it with a recent milestone. Were you able to help them reach their KPIs recently with your work? Were you able to help them increase their engagement and boost their sales?
Mention such in your billing statement and you might speed up the payment process. Your receivables performance management can help you get on the right track with this.
Make a personal appearance.
Dropping by your client’s office is a good way to collect payment faster. Your personal appearance can encourage them to prioritize your invoice statement, as they wouldn’t want you to be waiting all day at their office after all.
Likewise, don’t simply barge in and make sure to give them a call a day or two to confirm your appointment. Let’s say you have an overdue payment for software coding that you did over a month ago.
When the client says your paycheck is already available for pick-up, politely mention that you will be in the area later that day, and you’d be happy to quickly drop by.
Accounts receivable and cash flow are of dire importance to every business. Ensure that these two aspects don’t get completely disrupted by overdue payments. Follow these tips to keep on track with your invoice collection.