Most small business owners have similar problems. One of the most demanding is managing cash flow. We need to pay our bills to keep the lights on and to pay our vendors and employees to stay in business. Everything would be just great if our customers paid us on time! This is especially true when economic times are tough.
Here are some ideas on what you can do to get paid faster:
- Be in the know – ALWAYS know who owes you and the amount that is due. Review your aging summary reports daily.
- Don’t Delay – Act Quickly – Call or email your customer on that day. Many times people do know they owe you and are a little embarrassed that they cannot pay on time. A phone call can go a long way to make everyone comfortable with the situation and to make sure your customer knows you like and appreciate them but that this is the business part of your relationship that cannot be ignored.
- Offer an easy way for them to pay – Make arrangements to pay out the balance or possibly go to COD for new orders and to include a little bit of the past due balance with each order until past due bills are paid. Put this in writing and thank your customer for working with you.
- Written records – Keep track of all conversations you have with your customers and even better, send an email outlining what you spoke about so that there will be no misunderstandings.
- Follow Up – Make sure that you have some sort of system that will remind you to call back that customer if the next promised payment has not been received. Constant communications will dramatically speed up getting paid.
We would love to be able to help you get paid faster!
Adopted From: Bookkeeping Tips from Sarina, Festival Bookkeeping, 2/26/16