, , , ,

Getting Paid Faster

, , , ,

Recent data from Xero has shown that Aussie small businesses are seeing a decline in late payments compared to previous years, however, most businesses are still being paid late. There are steps you can take to get paid faster - read on to find out how you can encourage your customers to pay on time.

When a small business gets paid on time, they are more likely to pay their suppliers on time - just one of many positive effects of faster payments. At the moment, the average wait on a 30-day invoice is 33 days, so how can you encourage on-time payments? Here are a few things you can do that can help.

Invoice Straight Away

Invoicing your customer straight away while the work is still fresh in their mind can lead to them paying you sooner. This is even easier with Xero or QuickBooks Online - you could even have the invoice in your customer’s inbox before you’ve even left the job! So email that invoice as soon as the work is completed and watch the payments roll in.

Provide More Payment Methods

Give your customers more options to pay - including online payment (like PayPal), which can make it easier for your customer to pay instantly.

Offer a Discount for Paying On Time

To encourage on-time payments, try offering a small discount if your customer pays the invoice on or before the due date. The discount will pay for itself if the customer pays on time, saving you the stress of chasing late payments.

Set Up Auto Email Reminders

Use your accounting software to set up auto reminders for late invoices. An email reminder will be sent for any unpaid invoices, with a copy of the invoice attached (so they can’t say they haven’t received it). You’ll be able to remind your customers that they need to pay their invoices without even thinking about it.

Want to know how Xero or QBO can help you get paid faster? Connect with us and we can show you!