No business school 7 tips for getting invoices paid on time

What to do when you’re not paid.

So a nice and “light” subject to start up with!

Everybody’s had it, late payments, no payments and people down right taking the biscuit when it comes to paying your invoice.

Here  are our 7 top tips for reducing the risk of not being paid on time:

  • 1: Know when it’s due.  Run reports from your accounting software so you know what is due and when. Then act on the information.
  • 2: Issue invoices straight away. The sooner the customer gets the invoice, the sooner you get paid.
  • 3: State both the payment terms and the due date clearly on the invoice. This gives the customer no excuse for missing the information… plus if they have to enter the date into their accounting software then it should auto remind them.
  • 4: Include bank account details so payment can be made direct. Put the information in large print on the invoice itself, and, if you are emailing the invoice to a new customer, give the bank details in the email as well.  This tackles the problem of a finance administrator assuming that because you are a new supplier they won’t have your bank details on the system and putting the invoice to one side until they have time to sort it out.
  • 5: Check every invoice is correct. Sounds stupid right… but many businesses just will ignore an invoice if its isn’t correct.
  • 6: Phone the customer a few days before the invoice is due to check that payment is in the system and will be processed. No one has ever been annoyed with a nice phone call.
  • 7: Check your own side. If your own administration is a mess chances are it will show in your invoicing procedure, just take a bit of care and follow a few of these steps and it all hopefully make your life a bit less of a mess!

As always you can’t react and act on information you don’t know, so make sure you know when all payments are due and when invoices should be sent.

 

These are just some trick and tips we’ve learnt over the years that help us manage our cash flow and keep it in check.

 

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