Top 5 accounting tips for getting paid on time

Written by Director, Huw Moseley

With Christmas just around the corner – do you find yourself chasing overdue payments?

Perhaps you’re the type of person who can’t relax if you have an unpaid bill? Or the kind who needs a couple of reminders to settle up? The world is made up of both types of people – and the whole range in between.

The big question is how to manage this range as a small company because let’s face it – the time you spend chasing payment is valuable time you could be spending on business development. Yet keeping track of cash flow is just as important.

So here are our top 5 tips for getting paid on time:

  1. Make it easy for clients to pay you – explain exactly how to pay (online ideally) and give them some options (card, transfer etc).
  2. Set clear expectations about your invoice terms – whatever you decide (15/30 days or 50% deposit/ full fee/ payment plan etc) explain your terms to your clients and ask them to sign an agreement.
  3. Put a payment date on every invoice – sounds simple but you’ll be surprised how few people have this line on their invoicing!
  4. Draw up a late payment policy – so that if you ever need it, you can motivate clients with a summary of the charges they’ll incur.
  5. Keep track of all payments – give us a call to discuss how you can replace all your spreadsheets and systems with one easy-to-use solution that will prompt you to chase payments in a timely fashion.

As well as these 5 recommendations – at Link we also advocate the use of clever apps and cloud accounting software that help to make your life easier. GoCardless is a great tool for signing clients up for both direct debit and one off payments and it links with Xero and Quickbooks to reconcile everything for you. It won’t work for every type of business, but it could be good for you…

So if you’re struggling to keep track of cashflow and get paid on time – we’d be happy to recommend an accounting solution, simply give us a call to discuss your options

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