How can SmartFee help reduce your debtor days?
SmartFee is a business founded by accountants, so we truly understand the professional services industry and appreciate the challenges that professionals and their clients face each and every day.
The sheer load of work accounting firms often need to deal with, particularly around tax time, can mean that despite good intentions, accounts receivable management can often fall by the wayside. Ironically, firms advising other businesses about their financial situations and how to implement good practices, often find themselves dealing with the exact same issues. Not managing your accounts receivables can often result in in high debtor days meaning that your business ultimately has less cash available to use.
To stay on top of accounts receivables, there are some good practices which should be implemented at your firm and which will assist in helping you take control of your debtor days and ultimately set your firm up for future success.
Be clear about policies and procedures
Setting out clear policies will encourage your clients to pay more promptly and procedures will help your clients understand the steps they need to take to pay you for your services.
Make sure clients understand your fee structure in advance
Let your clients know what they should expect when working with you. Doing so will prepare them for any problems that may affect your fees which could either increase or decrease depending on the situation.
Invoice immediately after work has been completed
Invoicing immediately will create a sense of urgency. Many firms will delay invoices until the end of the month no matter when the task has been completed but this will only increase your debtor days.
Offer clients several payment options
Offering clients several payment solutions such as bank transfer or credit cards makes it easier for them to pay you back. SmartFee is a great payment option!
Offer incentives for early/upfront payment and provide flexible payment solutions
Offering incentives for paying early or upfront is another way to encourage clients to pay faster. It could be a small gift certificate or discount. Providing flexible payment solutions such as SmartFee, will help increase brand trust, loyalty, conversion rate, affordability and improved user experience.
Automate reminders for overdue invoices and track invoices
Automating reminders, is another proactive step to reduce debtor days. Clients from time to time may forget to pay so implementing a follow up routine will help everyone keep on track.
How does SmartFee work?
- You send an invoice to your client for services rendered
- Your client will complete a simple application with you
- Application details will be confirmed by SmartFee
- SmartFee will help your client choose a repayment plan that they can keep up with (from 3 to 12 instalments).
- Once your client has made their first payment, SmartFee will pay the full invoice amount to your firm
Why should you use SmartFee?
- No cost to your firm or lock in contract
- Simple transparent online sign-up process for your client
- Full invoice amount paid to your firm within 3 business days of your client making their first instalment
- No application or administration frees
- Approval within 24 hours for your client
- Dedicated Client Relation Manager to administer client accounts and minimise potential missed payments
- Branded online payment portal so your clients can pay you directly or using SmartFee
Instead of stressing about payments and chasing your debtors, you can sit back and relax and let SmartFee handle it so you can focus on doing the work that matters and continuing to grow your business.
SmartFee is the smarter way to pay. Contact us to find out how you can get started today!