Does your business need to improve billing practices?
February 27, 2014
For businesses that operate on a billing-and-invoice cycle, establishing best practices for timely repayment should be a priority. Small and midsized operations need to have reliable revenue streams, especially when it comes to products and services that have already been provided to clients.
Getting customers to pay their debts on time involves a wide variety of methods and tactics, from establishing a reliable system that makes it easy to accept credit card payments and use electronic check processing services to taking advantage of organizational strategies and optimizing interactions with buyers.
Forbes recently discussed the different avenues smaller businesses can pursue to improve the promptness of client payments, reduce stress and improve overall fiscal operations.
Start simple and build up
An easy place to start with improving invoicing efficiency is to have a defined system for generating the bills and getting them out to clients. Choose one way to create and send out invoices to clients and use an organizational tactic like assigning a unique number to each one produced. A tracking system can help businesses tell which clients haven't paid as well as provide a benefit during a financial dispute or audit.
Providing multiple avenues to accept payments should also be a priority. The more ways a customer has to pay off their amount due, the more likely they are to find a method that works for them. Finding a payment solutions provider that can offer a variety of options can help decrease turnaround on clients paying their bills.
For current Sage 50 customers looking to expand their relationship with the company, using Sage's payment processing services is a valuable addition. In fact, almost all Sage 50 customers will automatically be approved for a merchant payment solutions account through Sage Payment Systems. The process is easy, hassle-free and fast, and it can directly benefit business operations.
Make sure terms and conditions are set
The Guardian offered some salient advice through its small-business network: Establish a set of terms and conditions about the delivery of goods and services to clients, as well as time frames for compensation.
Written terms and conditions can help your business when establishing initial expectations and requirements with customers. They can also serve as proof and protection during litigation. Defining quantities delivered, deadlines for delivery and payment any sort of guarantee and other components before a transaction starts can save a lot of time and trouble down the road.