12 ways to get your invoices paid faster

1. Discuss credit terms with your new client – set the expectation
2. Change your credit terms to be less than they are right now – research has shown that invoices are paid 2 weeks late. So better to be paid late on short credit terms than late on long credit terms
3. Get invoices out on time – be clear about what makes a service or product billable and bill it. Don’t be shy about billing promptly, the client has had the serviceproduct, they need to pay for it
4. Make it standout – clients processing lots of invoices may put it on the pile with the rest, but if it stands out then chances are that it will get aid faster
5. Be able to report your aged debtors and then chase the late ones rigorously. Send a statement and call them – some people get so much email that it gets ignored
6. Add late payment charges – you can always reverse them but it will generate a conversation where you can re-iterate your priority to be paid on time
7. Get the entity right that you are invoicing – if it is called Jupiter Construction Limited, don’t put JC limited on the invoice
8. Make it get to the right person – does it need to go to the budget holder or accounts payable or both
9. Do you offer multiple payment methods – cheque, bank transfer, paypal, debit card, credit card – the more methods the more likely you will get paid faster.
10. Review the average days to pay for your clients and target the late ones – don’t treat all clients the same
11. Delegate your credit control – if you are running the business and delivering clients you won’t focus on this and a part time resource can
12. Send electronic invoices with Pay Now feature – Xero cloud accounting does this

CIMA Accountant

Members in Practice

Steve Bicknell