Get innnn! It’s an exciting feeling when a client makes payment on an invoice. And whilst some customers pay as soon as they receive the paperwork, there are many who delay until the due date.
Here are some handy tips to help you get paid sooner:
1. Set payment expectations up front
Conversations about money are often awkward. Ensure your customers know how and when they’ll need to pay by raising an estimate or quote during negotiation. A good estimate or quote will include your payment terms, making your expectations clear early on.
With Clear Books, your customer can click to ‘accept’ these terms. That way you’ll always know they’ve read and understood the conditions of the quote.
2. Send invoices as soon as the job is done
The payment terms on your invoice only start when you create and send the invoice to the customer. So if you wait 3 days to send an invoice with 30 day payment terms, you’re extending your client the luxury of 33 days to pay.
Sending invoices can be quick and simple when you use accounting software. Speed up invoicing by;
- Copying existing similar invoices rather than starting from scratch each time
- Raising invoices on-the-go with your Clear Books Mobile accounting app
- Creating a quote or estimate first so you can simply ‘convert to invoice’ when the job is done.
3. Experiment with your payment terms
Everyone has a friend that’s always late. For me, that friend is Dan. Dan arrives at least 30 minutes late to any event. I’ve started telling him our events start 30 minutes before the actual start time. 7pm dinner? Dan is told the reservation is at 6.30pm. It’s a great way to get him there on time!
Use the same strategy with your customers. If you have customers who are consistently 10 days late, try shortening 30 day payment terms to 20 days. You might just get paid on time for the first time!
4. Try ‘payment enabled invoices’
BJ Fogg’s famous behaviour model says that when motivation and ability are high, people will take action.
Increase the ability of your customers to pay by including a link on your invoice to an easy payment form. Your customers can simply type in their card details and pay you in an instant.
Clear Books integrates with both PayPal and GoCardless to accept payment for invoices. It’s a great way to get paid quickly.
5. Set auto-reminders
If an invoice is out of sight, it’s likely out of mind for your customers. Clear Books allows you to set automatic payment reminders for your customers. A simple email warning your customers that they only have 3 days to pay could be the trick to getting paid sooner.
Getting paid early is great because it provides you with the cash flow to pay yourself, invest in new assets and innovate your offering. Try invoicing on Clear Books today to get paid faster.