Tips to get your customers to pay you on time
If you’re running your own business, you need to make sure your customers pay you on time. Here’s our top three tips for how to do that.
Tip 1. Use online invoicing software
Online invoicing is a popular feature of accounting and bookkeeping software packages like Xero. You can use this software to send invoices quickly and easily while you’re “on the go”, as well as to generate automatic payment reminder notices for your customers.
Tip 2. Send an account statement
If you have a customer with several outstanding invoices, send them a summary account statement so they know the total amount they owe you. You can also use software like Xero to prepare and send this statement for you as well.
Tip 3. Charge a late payment fee
You’ll motivate your customers to pay you quicker if you charge a late payment fee. And you guessed it, you can do that easily with Xero software. You can set a late payment fee to be automatically added when one of your invoices becomes overdue. It’s also important to include this information up-front in your invoice payment terms.
If worse comes to worst and your customer still doesn’t pay you, it’s important that you write off the debt to make sure you don’t pay any tax on the unreceived income.
How we can help
At Scorpion Bookkeeping, we’re a Xero-certified advisor. We specialise in helping innovative business owners to take advantage of all the benefits of cloud-based technology. We can help you to get set up in the cloud and we can also provide you with any bookkeeping support services that you need. We currently have business clients in South Australia, Victoria and New South Wales.