It’s easy to overlook cash management when you are busy focusing your efforts on dealing with clients, developing your business or improving customer service. The fact is, if you push your accounts receivables to the bottom of your list of things to do, your clients are likely going to treat payment of your fees in the same way.
Cash management means knowing where cash is coming from and going to and quite simply, firms that have a structured follow up process with their clients get paid sooner.
There are steps you can take to maximise the likelihood of being paid on time for the work you have completed while ensuring you maintain a great relationship with your clients.
Below are a few simple measures you can implement in your process to ensure you get paid on time
- Make sure that terms are agreed with your client upfront and in writing
- Send invoices on time with the due date clearly stated, any discounts for early payments and/or extra interest on late payments noted
- Call or email to verify that they have received the invoice
- Follow up 10 days or so before the due date by calling or sending an automated reminder that the payment is due soon
- If you still have not received the payment by midday on the day the payment is due, call to remind them that the invoice is due today and that you will be checking once again to make sure that you have received the payment by close of business.
Ensuring that clients have a variety of options to pay your fees is also imperative. With SmartFee you can get paid upfront, in full for your work while allowing your clients to pay your fees in manageable monthly instalments. This will allow your firm to maintain healthy working capital while simultaneously providing a solution that lets your clients manage their own cash flow more effectively.
For more information call us on 1300 723 243 or email us at admin@smarfee.com.au today