The business owners wear many hats as the clients can sometimes take multiple months to pay their invoices.  Perhaps managing debtors and following up on invoices also takes time and resources. Of course, you’ll go through all of this more quickly and reliably.

There’s no one-size solution to fit, here we’ve covered some tips to get the invoice paid on time.

No 1 –  Agree on clear and short payment terms:

Make Payment terms clear to the client. Get invoices out as soon as possible to get the invoice paid sooner.

Don’t be casual, be sure to stick about your payment terms.

No 2 – Make sure it’s sent to the person who pays the bill

The person that you deal with may not be the same person that you want to send the invoices to. Therefore, send the invoices to both the person who authorizes the payment and the person who actually processes it.

Ask clients who you should send your invoice to.

No 3 – Provide easy to understand and accurate invoice

Queries delay payments. The best way to avoid them is to make sure your invoice is accurate and straightforward. For example, if you need a PO from your client make sure you get it and include it on your invoice.

Check if your invoice includes every details : business name, contact details,the date, bank account details, payment terms and more.

No 4 – Include your bank details

Putting your bank details on an invoice can let your client process easier. Consider giving them as many options as possible to pay your invoices on time.

If you want to make sure to transfer money to the bank account directly, then include the bank details.

No 5 – Follow up on overdue invoices promptly

Overdue invoices should be followed up immediately. You can early call in a day, call often or remain polite to get invoice paid.

Be sure to get the client’s agreement at the very beginning, then the terms will be simpler and you can easily follow up with the invoices for each payments later on.

No 6 – Add overdue fees

The invoices without additional fees results in delayed payments. Adding an interest or a late fee on overdue payment makes the invoice paid before the deadline. Let the client understand properly and pay accordingly.

Be diligent about collecting cash, allowing clients for more than 30 days to get invoice paid can seriously affect the cash flow.

No 7 – Consider incentives for paying early

Providing a client discount can be good, but make it clear what’s more valuable. Ultimately, if you decide to offer payment discounts then it is slightly less than the full payment now. Determine if your profit margin allows for discount.

Review your finances to ensure that you can afford to offer discounts.

No 8 – Transparent Communications:

Introduce transparency into the relationships i.e. clearly communicate exactly what type of transactions will be charged to client. Building happy relationship with customers is the key goal of every business. The failure may result in delayed payments, lost profits and increased headaches.

When signing to new customers, keep the terms codified in agreement.

No 9 – Automate the invoicing process

The automated solution reduces the transactional costs and eliminates costly mistakes entirely. The main advantages of automation includes increased throughput or productivity, improves robustness, increases consistency of output, reduces human labor costs, expenses and many more.

Choose invoice automation solutions for complete invoice-to-cash process

No 10 – Switch to recurring billing

The recurring billing solution for your business is an essential for getting the most out of the retainer clients. It improves the overall payment cycles in business. Recurring invoicing helps a business with easier forecasting of revenue in the coming months. Recurring profiles help in improving the revenue of the business as it improves regularity of the business. Adding automatic payment reminders to recurring invoices, is a useful method for getting invoice paid on time.

Recurring profiles help in improving the revenue of the business as it improves regularity of the business.

No 11 – Online Payment solutions:

This is an integral part of professional business invoicing process. A company can better manage its cash flow and make capital available to reinvest with faster predictable payment cycles.

Invoicera invoices comes up with an option to pay via 25+ payment gateways to receive payments faster.

BOTTOM LINE:

The truth is if you want to process your invoices smoothly and get invoice paid on time, moving to online invoicing platform enhances capabilities to reach its goal. So why not use it in full extent?

Using online invoicing software like Invoicera helps to manage recurring task easier, payments faster, manage subscriptions and ensures accuracy.

Not every tip works almost every time, try different tactics until you find the one that works for you. Take a  complete guide to online invoicing to ensure you never have to track down a late payment again.

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