Running a service business means you’ve got to keep track of client or customer payments. Because when customers don’t pay on time, it can mess up your cash flow. But staying on top of your Accounts Receivable doesn’t have to be hard. Here are 8 simple tips to help you get paid faster and avoid any unnecessary stress.
1. Be Clear About Payment Terms
Make sure your customers know exactly when and how to pay you. Tell them upfront when payments are due and what happens if they’re late. This keeps everyone on the same page and reduces any surprises later.
2. Send Invoices Right Away
The faster you send an invoice, the faster you get paid. Don’t wait around—once your service is done, send that invoice! And double-check it for mistakes, so there are no delays in payment.
3. Follow Through on Late Fees
If you include late fees in your payment terms, make sure to enforce them. I’ve seen many business owners say they charge late fees but never actually do it. If you don’t follow through, your customers might keep paying late. Stick to your word, and you’ll see better results.
4. Follow Up Regularly
Don’t assume people will remember to pay. A simple reminder a few days after the due date can make a big difference. Friendly follow-ups can help you get paid without having to chase after customers.
5. Make Payments Easy
Offer different ways for customers to pay you—credit cards, ACH bank transfers, or even digital platforms like Zelle and Venmo. The easier you make it, the quicker they’ll pay.
6. Use Tools to Help You
There are plenty of programs that can automate the payment process. You can set up automatic invoices and payment reminders so you don’t have to keep track of everything manually. It saves time and helps you stay organized.
7. Check Your Accounts Regularly
It’s a good idea to check in on who owes you money. Look at your unpaid invoices regularly so you can spot any issues early. Keeping an eye on things helps you stay in control.
8. Talk to Your Customers
If someone is late with a payment, don’t be afraid to reach out and ask what’s going on. Sometimes customers are having their own money problems, and an honest conversation can help both of you. Maybe you can work out a payment plan.
Watch Out for These Common Mistakes
- Not enforcing late fees: Having late fees but not enforcing them sends the wrong message to clients and they won’t take you seriously.
- Skipping regular follow-ups: If you don’t remind people to pay, they can easily forget. Your follow up also lets them know you want to be paid on time.
- Doing everything manually: Using tools to automate the process can save you a lot of time and energy.
By sticking to these simple tips, you’ll keep your payments on track and avoid a lot of common headaches. Find out how I can assist you.
