Billing is one of the most overlooked facets of a business. Business owners usually focus on other factors such as making their business grow that they often set aside accounts receivables. Due to this, most accounts are way past due until such time that the business cash flow is reduced. If you’re having problems in managing accounts receivables, here are a few tips to remember to get things flowing back again.
Set Billing and Invoicing as a Priority
Cash flow is an essential part of any business which is why it is best to prioritize billing and invoicing. After a deal, make it a habit to make an invoice immediately. Billing customers promptly help increase their likelihood of paying on time.
Create a System
Make sure you have a system to keep track of all those invoices and customers you’re dealing with. Accounts receivable software is the trend for businesses now since it makes the process more convenient and also efficient. Contact an expert in accounts receivable solution to know which software suits your needs.
Easy to Pay System
When customers find it easy to send their payments to your company, the more they are likely to pay their account on time. Offer various payment systems to cater to your clients. There are plenty of payment methods available now. Thanks to the internet, customers can now send their payments online.
Don’t Forget to Remind Them
With so many things to attend to, customers sometimes simply forget to pay their outstanding balance. Avoid this from happening by sending them an invoice a few days before its due and giving a follow up when payment is not received.
Clarify Payment Deadlines
Payment terms vary among companies and also depend on the amount of the invoice. A payment term can range from 30 days to 60 or even 90 days depending on what was agreed. Make sure that your customers know the terms so they could be able to settle it on time. You may note this on the invoice so they get reminded every time they receive one.
Your product prices may change at different times. There will always be those lucky clients who enjoy lower amounts in their invoice since they purchased during a promo or discount. However, it is best to review your pricing to know if you’re still at par with the competitors. Check if your products are priced similarly to your competitors. Observe if your clients are more satisfied with your service. The better experience a customer has when dealing with you, the more likely they are going to pay their invoices on time.
Creating and nurturing customer relations is one of the best things you can do to increase your business revenue. Be polite in dealing with them. Use kind and polite words when mailing them their invoice and follow up reminder.
Although invoicing and billing is a challenging task for almost any business, proper management of it helps a lot in keeping the cash flowing and making your business grow.