![]() First and foremost, a good invoicing system is about clarity. It all starts from before you even send the invoice. This is a process you can follow to increase your likelihood of getting invoices paid on time. Failing that, chasing outstanding invoices is all about getting them paid as soon as possible. The primary goal is to get them paid in full, on time. Navigating late invoices is about communicating well with your debtors. Steps to making sure you get paid & if not, effectively chase invoices If you’re concerned that the client may be heading towards the point of not being able to pay an invoice, you might also consider refusing to work with them. If you’re supplying goods to that client, you might want to refrain from actually handing over those goods until you’ve been paid. Ensure you have good terms and conditions in place. In these instances, it may be worth considering your options. Wanting to use cheques, or having cheques dishonoured.Being slow to respond to messages, especially if they’ve always been good communicators. ![]() Becoming slower and slower to pay outstanding invoices.Deviating from credit terms and conditions, when they haven’t in the past.However, there are signs to look out for that can signal this in advance. This can mean invoices never get paid, which is the worst case scenario. When clients don’t pay invoices, it may be a sign of financial distress. Time spent chasing outstanding invoices is also a sunk cost, taking you away from your core business. Businesses have a range of costs, but invoices are the main income stream. Business costs don’t wait around for invoices to be paid, and if you don’t have money coming in then you have to rely on cash reserves to pay things like bills and wages, or purchase goods.Ĭash flow is extremely important in any business. Unpaid invoices have a huge impact on business cash flow. Do late payers have an impact on cash flow? This article is everything you need to know about chasing outstanding invoices so you can get paid quickly. One of the toughest things about it is, how do you do it in a way that preserves your relationship with the client? You don’t want to be too aggressive, but you also want to be assertive enough so they know they need to pay the invoice now. Clients may have missed the invoice, lost it or forgotten it.ĭifferent people have different ways of chasing outstanding invoices. This is just one of those realities that everyone has to face. Unfortunately, sometimes it just doesn’t happen. When you’ve done work they’re satisfied with and sent through an invoice, you expect payment to take care of itself. It’s annoying when clients don’t pay invoices on time.
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