Business owners know steady cash flow is critical to long-term survival. When owners struggle to collect payments, they have less cash on hand to manage operations, pay employees, or take care of other incurred expenses.
While collection problems are common for small businesses, employing some simple strategies to strengthen accounts receivable policies, practices, and technologies can have a dramatic impact on decreasing missed or late payments.
Here are three strategies to help you get paid by your clients more quickly and easily:
1. Use Technology to Help You
Even in our era of mobile, always on-the-go, you might be surprised to learn how many companies still send invoices via “snail mail”. Electronic delivery enables such features as tracking whether someone has opened your email and allowing customers to see their account status in real-time. Customers have fewer and fewer excuses to claim that “they didn’t get a bill”.
Leveraging technology and sending payment reminders via email is also a great way to ensure that the notifications are being sent to the customer on time, allowing the business owner not to appear as the “bad guy” chasing down a payment.
2. Make it Easy on Your Customers
If you’re sending invoices via email, make sure to include clear instructions along with a clickable link, to enable immediate payments with just a few short clicks. You can also enable this with a mobile app or through a secure portal on your website.
As opposed to going through the manual steps of cutting and signing a check, putting it in an envelope, and sending it in the mail, your customers will appreciate you making bill payment quick and easy for them.
3. Find the Right Tools
With the right tools, managing your accounts receivable becomes less of a burden.
Industry-leading tools such as Bill.com make it easy to send invoices, schedule recurring payments, set up automatic overdue reminders, transfer payments into your account, and even sync with accounting platforms such as e QuickBooks and Xero.
Minimally, your due diligence when selecting various tools should include considerations such as functionality, security, ease of use, and third-party ratings.
Less Time on Payments. More Time with Customers.
By streamlining the payment process, offering payment options for customers, and taking advantage of digital tools, you can make collection problems a thing of the past for your small business. Explore your options and find out what works best for your company by staying up to date on industry resources.
Contact the professionals at Keeping Your Balance for help improving your accounts receivable process, so you can worry less about collecting payments and focus more on delighting customers.