How to Get Paid on Time by Doing Absolutely Nothing

Keep on top of invoices without lifting a finger!

In the past, we have talked about debtor management, the ways you can avoid late-payers by keeping an eye on your cash and assets cycle, and now we thought it was time we talked about the ways you can keep on top of those outstanding invoices without even lifting a finger!

Why Getting Paid on Time Matters

Dealing with late-payers is frustrating, time-consuming, and at times, downright awkward. For freelancers, sole-traders and small businesses, getting paid on time is essential to keeping your cash flow under control.

If you’re not in the position to turn down those perpetual late-payers’ business, then you need to put strategies into place to best manage those late-payers.

Gentle Email Reminders for Getting Paid on Time

Sending a polite, yet firm reminder email to clients a few days before their invoice becomes due is a good way to remind people an invoice is due to be paid, particularly if you have terms of 21 days or more. Often you’ll find most people will pay you once they’re given a gentle nudge via an email reminder.

Of course, there are always those who’ll still try and stretch it out as long as possible — it’s likely their cash flow isn’t much chop; in a sense, by paying you late they’re robbing Peter to pay Paul.

Most of the time, these clients are hoping you haven’t noticed. By sending them a follow up email reminder a couple of days after your invoice was due will show them you have noticed, you haven’t forgotten, and they’ll likely concede defeat and pay — if they still don’t respond, it may be time to implement some of the strategies we discussed here.

More Stringent Payment Terms

But if you find emailing you clients each time their invoices come due and then again when they’re late is not only time-consuming, but also awkward, try setting up the parameters in your invoicing software so that automatic reminder emails are sent out before and after your invoices come due.

Most cloud-based accounting programs, like Freshbooks, Zoho, Shoebooks, Saasu and Salestastic now offer this automatic reminder facility, freeing you up to concentrate on the other areas of your business.

For businesses that have a dedicated accounts receivable department, the ability to send automatic reminders could, depending on the size of your business, save hours, even days of manpower. Plus, it eliminates any awkwardness you may feel chasing someone for a $50 invoice — sure, that one $50 isn’t much, but over time they do add up.

So get paid on time without even lifting a finger by using the automated reminders in your accounting software.

Remember: If you have already completed one of our MYOB training courses and need a bit of a refresher on the Accounts Receivable module, which deals with the ways to get paid on time, you can review it again for FREE if you are within your 12 month enrolment access period OR if you selected our additional option of Lifetime Access.

Angela

Recent Posts

Top 5 Things Small Businesses Must Do Before June 30 to Get Their EOFY Accounting in Order

As the end of the financial year (EOFY) approaches in Australia, small business owners need…

1 week ago

How EzyLearn Gets Xero Skills Into Your Brain (So They Stick!)

[A casual chat between two friends – Sam, a job seeker wanting to upskill, and…

2 weeks ago

Mastering Xero with EzyLearn: Building Confidence Through Practical Learning

In today's digital landscape, proficiency in cloud-based accounting software like Xero is essential for professionals…

3 weeks ago

Xero gives itself a 90% high distinction – users disagree

Have you seen the recent ads promotion 90+ % approval from their customers? The claims…

1 month ago

Intuit QuickBooks Course updates coming – features and navigation changes

Intuit is hunting for ways of helping their software become more relevant to Australian small…

1 month ago

Another price increase from Xero – 4 straight years of price increases sends social media mad?

It's interesting how negative the sentiment is on Linkedin and Facebook when you start seeing…

1 month ago