Managing accounts receivable used to go like this: first, you’d have to create an invoice and send it to your customer. Then, you’d wait for the invoice to be delivered and entered into your customer’s payables system. Typically, you’d have to wait the amount of time allotted for payment (15 or 30 days), then wait for the cheque to be delivered in the mail. Of course, if the payment was not sent on time, you’d need to follow up with the customer and remind them to send the payment.
Fortunately, those days are coming to an end.
Today, payment automation enables business owners to send invoices and get paid faster online. If you're waiting too long to receive payment after invoicing your customers, there are numerous strategies and technologies to help you get paid faster.
1. Standardize your invoices for rapid payment
Start by developing an online invoice which you can then replicate for future invoicing functions. It's possible to personalize your invoice to include all of the crucial invoice information, while maintaining a professional layout. Continue using the exact same template for consistency. When customers receive your next bill, they’ll know exactly what to expect and will not need to spend much time inspecting it before sending payment.
2. Send invoices when work is complete
Electronic invoicing is simpler and quicker than ever before. Monthly billing cycles were easier when invoicing was more of a manual process. With electronic invoices delivered by email, It is now possible to bill your customers when the work is complete instead of waiting for a specified manual billing cycle. The sooner the customer gets the invoice, the sooner you can get paid.
3. Give customers payment options
Giving customers more payment options to choose from translates into more convenience for customers.
When payment options are reliable and convenient, your customers are more likely to pay you in a more timely way. Adding a "Pay Now" button on your electronic invoice makes it effortless for the clients to send payment immediately.
Give customers the option to pay by credit card or bank-to-bank transfer, using SimplePin’s SimpleEFT. (For more information on SimpleEFT, click here.)
4. Use Pre-Authorized Debit agreements
A Pre-Authorized Debit agreement (PAD) is a kind of contract which lets you withdraw money from a specified account automatically. A PAD agreement is most useful for customers with whom you have a continuous connection or regularly recurring payment.
The most effective way to use PAD payments is with a provider that helps you manage the agreement with the customer, as well as process the automated debit payment in one online tool.
5. Send automatic reminders
With electronic invoicing and payment methods, you can set automatic reminders which are delivered to your customers effortlessly. For instance, after invoices are delivered, these systems can detect whether invoices have been opened and paid and send appropriate reminders. These reminders save considerable time that would otherwise be spent manually tracking payments and following up with customers. And they can be customized to your business needs.
SCHEDULE A DEMO and see how SimplePin can automate your invoicing and accounts receivable system, while helping you get paid faster and reducing the administrative costs of managing receivables.