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6 ways to get paid faster in small business

Poor cashflow is a major cause of failure in small business. The right strategies can help you get paid faster and keep the cash flowing.

So, you’ve done the work. Now all you need to do is send an invoice and get paid. Simple – you’d think. Unfortunately, you can’t always bank on it. Here are our six top tips to get your clients to pay up quickly.

1. Consider part-payment before starting the job

It’s reasonable to ask for a deposit before starting a new job. A willingness by your client to commit shows they’re serious about working with you. It also ensures you’ll receive at least some payment for the job in the unlikely event that the relationship sours.

2. Invoice promptly

Send your client an invoice as soon as the job is complete. Don’t wait until the end of the week or month. This way it’s fresh in your client’s mind and you may get your money quicker. Xero makes it easy to create an instant professional invoice, even when you’re out on the road. More important still, it makes it easy for your client to pay you.

3. Invoice right

It’s no good emailing your invoice to Mandy Smith in marketing if the person responsible for paying it is Andy Jones in accounts. Especially in government and larger corporate organisations, your invoice can get lost in the corridors of bureaucracy unless you pinpoint the right person. It’s also helpful to break down your account into a list of separate tasks. Your client will be less likely to query the bill if they understand the full scope of the job.

4. Email, not snail mail

Most clients prefer to be invoiced and make payments online these days. It not only saves you time but saves you money for stationery and stamps. Xero’s invoice function makes it easy.

5. Send reminders

State your terms on your invoice – 7 days, 14 days or whatever. If you haven’t been paid within this time period, send a friendly reminder. Xero makes it easy to automate this. Allow a few days’ grace and if you still haven’t been paid, make a phone call and enquire in a courteous manner whether there’s a problem with the invoice and when you may expect payment.

6. Keep up with your cashflow

The problem when you don’t get paid is that you may not have the funds to pay other people. Always be aware of your cashflow status and step up efforts to get your money in if you’re running low.

Contact us today for more advice on your business cashflow and how to set up easy invoicing with Xero.

 

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