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How to Get Your Customers to Pay On Time

Updated: Jan 12, 2019





Do you have customers who do not pay on time? Most of small-business owners have unpaid invoices that are at least 60 days old. Unpaid invoices can quickly spell a financial trouble for business if no action is taken. Here are steps that you can take to manage invoice collection better. Establish the process Monitor and review your receivables at least once a week. Develop a system for following up with payments that are 15 days, 30 days and 45 days late. Use a set of payment reminder letters to remind your customers of past due invoices. Have a contract in place A contract should have clear guidelines around the services you promise to perform as well as payment terms. It’s best to work with an attorney who understands your business and industry when creating such a contract. Make it easy for customers to pay Provide multiple options whether via a credit card, check, cash or bank transfer for payment. You can also implement automatic billing for reoccurring services and provide a one click payment service on your website. Use face to face meetings A client may not appreciate a face to face meeting just to collect payment. You can use client visits as a way to see how the client is doing as well as pick up the check. It makes the collection feel like a side note. Outsource collections Establish the process to send overdue customer accounts to a collection agency. You can also give us a call to discuss your debt collection options.

In order to make any accounts receivable program successful, it is important to start working on collecting late invoices as soon as possible!

Let us evaluate your accounts receivable policies. We will be glad to assist you in these crucial areas. Just give us a call at 833-662-9922 to get started. 

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Created by SHEPIN CPA LLC 2019

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