• CALA Associates Ltd

Getting Your Invoices Paid Promptly

Updated: Dec 7, 2021

Getting your invoices paid promptly and reliably is crucial in maintaining good cash flow in your business but as the economy is in the midst of recovery, many businesses may be experiencing delays in receiving payment from clients or customers.





Here are a few tips to give you the best chance of avoiding this:


Invoice Promptly


Sounds obvious but the longer it takes you to send out an invoice, the longer it takes for you to get paid (and the more likely you might receive payment at all).


For one-off pieces of work send invoices promptly and regularly. For recurring work, we recommend using the recurring invoice feature in your accounting software and as always we recommend Xero!


It can be easy to get preoccupied with running your business meaning admin falls behind. This can be damaging so ensure you work smart with helpful tools like recurring invoices or employ someone to take care of the admin. We can help take care of your invoicing so reach out if you’re struggling!


Simplicity


We’re all busy in business so make it quick and easy for your customers/clients to make payment.


For one-off invoicing consider including a pay now an option on your invoice - Xero allows for this via stripe. It doesn‘t even need to be that fancy, you’d be amazed how often bank details are not clearly detailed on invoices!


If you undertake work whilst out and about, or at a client's premises consider using a card payment facility. With the advancement in tech, this is easier and cheaper than ever. Even just using your smartphone! What better way to avoid payment delays than taking payment there and then?!


Clarity


In a similar vein, clear and transparent pricing encourages prompt no quibble payment. A surprise in the invoice you send to your customer can lead to challenges and delays in receiving funds.


Resolving this may include switching from hourly to fixed fees or ensuring you make your client aware of additional charges during a project.


Direct Debits


One of the best ways to ensure prompt and reliable payment for recurring invoices / regular customers/clients is using a Direct Debit facility. Our favorite is Go Cardless.


Get To Know Your Customer/Clients Process


Who is best to send/address the invoice to? Must the invoice include a PO number? Is everything they need to be included on the invoice? Particularly in the case of large companies, invoices can be rejected if it doesn't meet the required criteria leading to the delayed payment.


Be Proactive


Ensure to send reminders/chasers if you have invoices outstanding. This doesn't need to be admin intensive; for example, there is an auto-reminders feature in Xero that will do this for you.


STOP! Stop Working If Payments Stop.


If your customer/client isn't paying you then stop undertaking work for them until they do.


If you're struggling with this or looking to implement a more intuitive agile system to increase your cash flow reach out to us here and let us take away the headache!

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