Customer Invoices: How to Handle Accounts Receivable
You work hard to provide the best products and services to your customers, but one kind of work that shouldn’t have to be hard is getting paid. In an ideal world, your company would simply send an invoice and it would get paid immediately, but unfortunately, many business owners need to work almost as hard to chase down customers to pay them as they did to create the product and deliver it in the first place. If you find that your customer invoices are piling up and they are not getting paid, you need to fine tune your accounts receivable strategy to ensure you are paid the money you are owed.
Not being paid promptly can cause serious cash flow problems and will make it harder for you to run your business. You may be delayed in purchasing materials you need or paying your workers. The worst part of this problem is that it isn’t your fault; you secured the client, did the work, and you simply have not been paid. There are several things you can do to make sure your customer invoices are paid promptly. First, make sure your invoices are presented in a professional manner. Appearances can have a substantial effect on how seriously your invoices are taken. Use a template that is professional quality. In addition, make sure you send reminders, at regular interviews.
After you have sent the third reminder, get in touch with the client and discuss when you can discuss the payment of what is owed. You can provide the option of gradual payment in installments or alternate methods, such as credit cards or bank transfers. Make sure your manner is cordial and assertive. Another important thing to keep in mind is to avoid doing any additional work for the client until the past invoices have been paid. This “strike” can put pressure on the client to pay the customer invoices. Consider carefully whether it is worth losing a client over this, but if the client is happy with your work and you take a stand not to deliver more goods until the previous ones are paid for, chances are, you will get paid.
If dealing with customer invoices is a chronic issue in your business, plan from the outset to provide incentives for early payment. If receiving money quickly is a priority for you, these incentives may be worthwhile. In addition, it is a good idea to have a significant amount of extra money on hand to cover late invoices so you don’t need to panic if you aren’t paid on time.