Whether you run a service or product-based business, ensuring that all processes are bulletproof requires time.
Running your business efficiently is no easy feat, but it’s not impossible either.
Chasing clients for payments is a challenging task and there is no easy way around it. Businesses have to put in extra effort to clear these pending payments as late invoices can limit their cash flow and affect the businesses financially. Here are some effective tricks you can follow to streamline the invoice clearing process and get the best possible results.
The invoice you send to the client should be easy to understand. This is necessary for avoiding any confusion when it comes to your payment terms and it allows the client to easily understand how much they need to pay. You can use a variety of templates for a simple invoice layout and always cross-check the provided information.
The time at which you send the invoices also affects the time of being cleared. For example, if you invoice the client weekly, sending it on a weekend might get it cleared early on. For monthly invoices, sending them at the start of the month would be the best choice.
Payment terms should always be included in the invoices. Enlist the relevant information regarding the due date and be clear about the payment schedule the client needs to follow. Nowadays, you can generate e-invoices through invoicing software and even include an online payment link for an easy payment process.
Don’t hesitate to contact your clients for a friendly follow-up on the invoices. You can send a friendly reminder in an email and even call your client if you don't get a response in a few days. In this age of automation, many businesses and companies use automatic invoice follow-up software to save time on this costly and tedious task. This software also has integrated support to process invoice payments, making it easy for the client to pay.
Having a strong business relationship with your client can get your invoices to be paid on time. Establish a personal connection with your client. If possible, meet them in person and be honest while doing business. When you have a solid relationship with the client, it becomes easier to follow up with them and clear invoices.
When invoicing clients, research a bit and find the right contacts to send your invoice. Be open and ask your client who to contact and how the invoice should be sent. After you have invoiced the client, you can contact them to confirm whether they have received the invoice or not. Companies and big corporations mostly require a few gentle reminders before they pay the invoices.
Besides sending gentle reminders and contacting them frequently, including a late fee penalty. Notify about the late fee client could incur if the invoice is not paid on time. The late fee can either be a percentage of the total amount or a fixed amount.
During communication, never be aggressive and maintain a calm attitude. A client can forget or be unaware of the transfer. Therefore, give it some time and be understanding about whatever their situation may be. Whenever you remind a client, communicate in an understanding manner and give it a personal style so the client feels comfortable communicating back.
Sending lengthy invoices or emails is not the right way to send a reminder. Maintain a clear and concise approach and always state the things you expect from the client. Furthermore, remember to always tweak up the payment reminder. Sending the same reminder without changing the subject line or the content can end up being ignored by the client.
Offering an extra discount in case of early payments is another effective trick to clear invoices easily. However, this option might not be suitable for small businesses. Upfront payment can also be asked for as many industries favor this practice. Asking for full or a percentage of the payment early on is always beneficial for an aspiring business. Therefore, carefully consider whether your business can afford to give these incentives before making a decision.
Getting your invoices cleared is a constant practice that can be streamlined by using the right tools. Following up on invoices and getting paid becomes a lot easier when you have a clear strategy. By using the above-mentioned tricks, you can easily make an invoicing strategy and follow it to get the best outcomes.