Sales are up but the cash isn’t flowing – 5 steps to get your invoices paid on time

You’ve managed to increase sales, but getting paid is a sticking point. What can you do to facilitate faster payments and boost the flow of cash through your business?

Here are five steps to help you get paid faster: 1. Electronic invoicing and payment It’s a thing of the past to send paper invoices through the post now that you can send them over the internet in seconds.  Offer online payment facilities such as credit card and PayPal to increase the likelihood of speedier payments, especially from your smaller customers. 2. Prioritise invoicing Don’t wait until the end of the month to invoice – send your invoice as soon as work is complete. Studies show that ‘recency’ has an effect on when you get paid, as the product or service provided is still fresh in the mind of your customer. 3. Clearly state payment terms Include details of the late payment penalties you’ll charge, when they come into force and the interest rate on any outstanding monies within the initial contract, as well as on each invoice. 4. Build a relationship Nurture customer relations from an early stage. Talk on the phone with clients and keep communication channels open. You don’t want to send in the heavies. 5. Keep track It’s so easy to forget who has paid and who hasn’t. Keep track of invoices and send reminder letters or statements with confidence. Financial literacy training enables you to run your business more efficiently, which translates to more money in your pocket. Colour Accounting ™ is our financial literacy course. Click here to secure your place. [traininglist slug=”colour-accounting-normal”]  ]]>