You don’t have to be a bookkeeping expert to know that late payments for products or services rendered can threaten any company’s financial security. If your small business has clients who are past due, the situation is undoubtedly stressful. Fortunately, there are steps you can take to speed up collections without destroying the working relationship.
3 Tips for Speeding Up Collections
1. Offer a Discount
If some of your clients tend to make delayed payments, consider offering them a small discount every time they pay on time. Incentivizing on-time payments can benefit both of you, as long as the discount is small enough that it will not cause any bookkeeping issues.
2. Submit Invoices Electronically
Sending invoices via traditional mail will add a week or more to the processing time. Even if you are invoicing local clients, the document will take several days to reach them and several more to make its way back to you. When you invoice clients via email, on the other hand, they will receive the bill immediately. To make the most of electronic invoicing, you should also accept online payments, which can make the transaction even faster.
3. Turn to Professionals
If some clients are frequently late to pay, you should not have to chase them down. Doing so will only waste the limited resources that you have. Instead, turn to a professional collections agency for help. This will save you a lot of time and hassle when seeking past due payments.
Unfortunately, when it comes to running a business, chasing down clients for payment is just one of the countless financial-related tasks that can distract you from what matters most. If bookkeeping is preventing you from finding new customers or keeping existing clients happy, turn to Tostrud & Temp, S.C. Located in La Crosse, WI, this accounting firm offers comprehensives financial services that are backed by more than 35 years of experience in the industry. You can learn more about their mission by visiting their website. To discuss your bookkeeping needs with a knowledgeable certified public accountant, call (608) 784-8060.