When running a business, you absolutely want to get revenue from your product or service. Similarly, as with accounting and bookkeeping from Richard Darcy. Well, late payments are very disruptive to cash flow and reduce business productivity. But the problem of late payments sometimes is not always the client’s fault. It could be that late payments are due to your own mistakes in the billing process. Below we will discuss what mistakes should be avoided so that payments can be received by the company on time.
– Mess up the invoice
This one seems clear, right? But small mistakes are often the number one reason why your invoices haven’t been paid. Be careful in correcting each invoice to make sure it’s correct. If you forget to change the old invoice number, for example, your client will likely enter it into their payment system and get a message that the payment has been paid. Your invoice must include a unique invoice number, accurate data, and a detailed account of what is being billed. You must also ensure that you have set invoice payment terms that are useful for the company’s cash flow and also fair for your customers or clients.
– Expect Immediate Payment
Did you pay the bill on the day you got it? Most businesses don’t. Most business clients will pay their bills by the due date. If this project is very large and requires high costs, it could be that the payment will be longer because the invoice may require several layers of approval before it can be processed. Because of this, when you build a company budget, include leeway for invoicing payments that are out of order. Finally, make sure to include the due date on your invoice in addition to the requirements that must be met by the client regarding payment.