Every month like clockwork you send out an invoice in hopes of your client actually paying it on time. Sometimes it’s paid in a timely manner and other times you find that you spent an entire day tracking down missing payments. With a new year right around the corner, we came up with the seven best tips to help you start 2023 off by getting your bills and invoices paid faster.
1. Define Your Payment Terms
Having clear and defined payment terms increases the probability of your invoices being paid on time. It helps your client understand due dates, payment terms, fees and when your invoices are sent each month. Answer as many possible questions that may come up in your invoice to avoid clients having to take time to ask you which may then delay your payment.
2. Request a Deposit
Having your clients pay a deposit or pay in full upfront can help with your cash flow and set expectations to make payments prior to the completion of a project. Collecting half upfront is a good indicator they will pay the rest at the end of the project too.
3. Make Payments Easy
The more flexible you are with payment types you accept, the higher the likelihood of you getting paid on time because it is convenient for the client. Offer to accept payments through platforms such as Zelle or PayPal, direct deposit, check or credit card. It also makes it easy for your client to then set up auto payments for you each month.
4. Automate Your Invoices
When you have a large client load that is billed at all different times, it is difficult to remember when to send your invoices. Using an automated invoicing system can help take the task off your busy workload. An automated invoicing system can also help you easily track who has paid and who is overdue.
5. Stick to a Payment Schedule
Sticking to a schedule helps your clients know when to expect their bill and it will make it easier for them to pay it on time. It also helps your cashflow, so you know what is coming in and when. Your schedule can be monthly, bi-weekly or the 1st and 15th of every month. Pick a schedule and stick to it.
6. Review Your Invoices Weekly
Reviewing your invoices each week helps you stay on track of any missed or overdue payments. You will know who is behind, who is on time and keep track of each so you know how your cashflow is looking for the month.
7. Send Reminders
Stick to a schedule of sending reminders to clients that have overdue schedules. It keeps you on track if you do it weekly and have it built into your schedule. Being proactive about payment reminders also ensures a client doesn’t get too behind.
We want you to start off 2023 getting paid on time to set the tone for the rest of the new year. Need help with invoicing or to get ready for tax season? We offer a FREE review of your books and bookkeeping packages that can suit your needs. Get your free review.