by Amanda Hoffmann | Featured Contributor
You have heard the term that “Cash is King” and it is especially so in business.
The best approach to cash flow is to implement “systems” that work.
I am going to share with you ten ways that have worked for myself and those of my clients to keep the cash flowing into your business account!
1. Invoice quickly
As soon as you complete your work, invoice the client immediately.
2. Make paying easy
Ensure that your invoice has your payment details printed clearly. You might include your bank account details on the bottom corner to make it easy for the customer to pay via their online banking. Or you may include an online link to a payment portal that accepts credit cards.
3. Use technology
Online accounting programmes are available all over the world. Use the technology so that you can easily invoice on your smartphone.
Link payment portals into your emailed invoices so that the customer can pay at the click of a button.
4. Perform a credit check
When you take down all the details about a new client, perform a credit check. This will at least give you a “heads up” on their credit history.
5. Clear trading terms
Ensure that if you want to be paid upon completion of your work this is stated clearly and in writing. Clearly highlight your trading terms on your invoices.
6. Implement good systems
Have a set system in place should your invoice not be paid on time.
Email your invoice
If trading terms are 7 days, send a statement via email on day 6.
If unpaid day 7 email a reminder
If still unpaid by day 10 send a final notice
I have found some customers need to be contacted three times before they pay. Be diligent when it comes to following up on all late payers.
7. Be polite and friendly
When chasing late payments, always be friendly and polite. You can be firm about trading terms, and diligent about following up. Both will be all forgotten by your customers,
rudeness or aggression will not be forgotten. Worse still, the client will complain about it to others.
8. Be consistent
What ever your approach is when it comes to ensuring customers pay, be consistent.
If you have a statement, reminder and then a phone call as your debt recovery process. then ensure you implement it.
9. Offer discounts for early payment
Offer a small discount to pay invoices on time.
10. Say thank you
Show your customers that they are valued by thanking them for entrusting their work with you. Send a thank you or christmas card in the post.
Little acts of gratitude can often mean that they will pay your bills before someone else.
Amanda Hoffmann – Sensational Entrepreneur, Bookkeeper Extraordinaire and loves Social Media
Hi, I’m Amanda Hoffmann and live in Brisbane, Australia. I am passionate about business and social media. I currently juggle being a mother of four school-aged children and run three businesses in completely different fields. While challenging, I believe they keep me thinking outside of the box. I have always loved being busy and I believe it is a mixture of my “can do” attitude and loving life that allows me to accomplish so much. Oh, not liking to sleep much certainly does help!
I started managing my first business over 18 years ago but sold it when I decided to start a family. I was unable to envision at the time how I could run a business and still be a dedicated mother. Since I now run three businesses and have a large family, I have found being organised and prioritising is the secret to success.
What are my businesses you might ask? My Office Books Virtual Bookkeeping, Kidd House Accommodation specialising in fully furnished accommodation for both students and professionals and Co-Founder of a new Social Media start-up called The Likeability Company helping SME’s get the most out of using social media and building communities.
I would like to share my experience in small business and answer any questions you might have regarding office organisation, cloud technology and share my experience in property investment.
I personally am fascinated by social media, particularly the fast pace of twitter and exploring the world of blogging. I invite you share my journey and get to know each other.