Collect Payments Faster
Getting customers to pay on time is one of the greatest challenges for businesses.
Setting up a customized accounting system that makes it easy to collect payments faster for your business is one of the most important ways I help customers improve their accounts receivable and cashflow.
A common issue I help contractors and freelancers in particular solve is how to quote and manage their project costs so they can stop underbidding to win jobs. Through the process I also identified that a lot of contractors and freelancers have issues with setting effective payment terms.
Monitoring your cash flow is essential to your operations, profitability, and growth.
How old are your receivables?
When your receivables are over 60 days old, statistics show they are at risk of becoming uncollectible and this can put your business in a cash crunch.
When you are quoting a new job or negotiating payment terms with a customer, you have to take into account when you’ll need to be able to pay your suppliers, employees and any subcontractors. Most likely your payables are due with 30 days.
If you are extending credit terms or setting an expectation for your customers that paying in 60 or 90 days is standard procedure – you have to ensure financing those costs is worth it over the long term. You can reset customer expectations by making your payment terms clear and offering easy payment processing methods to improve your cash flow and support your growth.
Make it easy to collect payments faster.
There are a number of online and onsite payment options to consider for your business to collects receivables in the fastest and most effective way for your particular business model.
These days a lot of people want to pay by credit card as it gives them 30 more days of credit – plus they can collect points.
Here at Debrah Burleigh and Associates we offer a free consultation to help you identify the best combination of software and apps to build the best payment processing system for your business.