It is crucial for businesses to get their account receivables settled on a timely basis, and this applies acutely to entrepreneurs. Indeed, unfortunately, certain clients delay the process of paying their bills. That is a business issue, because crucial opportunities can be lost due to irregular cash flow. But fear not! An article on Entrepreneur.com highlights a few ways business owners can ensure regular payments from customers, and hence keep their business running smoothly.
Fill in the Gaps:
Before sending out an invoice to a customer, make sure all vital details such as the invoice number, purchase date, purchase order number, account number, description and Tax Id are included in the document.
The client is not responsible for paying the bill unless an invoice has been sent out. In a business transaction, it is therefore essential for the business owner to complete this step as soon as the assigned work is over. Neglecting the invoicing process will only cause unnecessary delays and have a negative impact on the company’s account receivables.
Also, clients tend to get confused if the bill/invoice only contains the dollar amount that needs to be paid. Breaking it down in individual charges will provide transparency as well as will build trust. This can help businesses build stronger connections with their respective clients.
Finally, making payment deadlines crystal clear also helps the business ensure timely payments. Business owners can also track clients’ credibility by analyzing their payment trends.
Keep it Fun:
Most people do not like invoices, as they are synonyms of cash outflows. However, a business can use invoices as promotional tools by adding exclusive offers or new products to the parcel, in order to keep clients interested.
A Payment is not the end:
Business owners can send a “Thank You” note or another special message to their clients after the invoice has been paid. This can help them increase the probability of future transactions.
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Thank you for reading, and until next week, stay WISE!