Cash Flow: The Lifeblood of Any Business
My passion is helping you succeed! Therefore, I’m sharing 10 tips related to invoicing and accounts receivable to bolster your cash flow. I encourage you to try at least one of these ideas and let me know how it affects your business.
Require partial payments up front for large projects.
If you are doing similar work each month for a client, implement a monthly retainer program and get paid at the beginning of each month.
Consider changing your payment terms. Just because it’s “standard” in your industry, doesn’t mean you can’t adjust for your business. Did you know? “Net 10” is more effective than “due upon receipt”.
Consider offering various payment methods, like ACH transfers and credit card payments, to avoid hearing “the check is in the mail.” Did you know? It’s illegal to make money on CC fees. You can pass along the CC fee, but you can’t charge more than the actual CC fee.
Invoice quicker and/or change the frequency of your invoicing. Invoice weekly or bi-weekly instead of monthly.
Consider incentives to pay faster.
Change the look, feel & wording on your invoice. Note: Your invoice should be professional, polite, and appreciative.
Make it easy for your client to know how, when, and where to pay. Note: Be sure your invoice shows your phone number and address for mailing checks.
Change your invoice delivery method – email versus snail mail. If you use QuickBooks®, you’ll know if your client has viewed your invoice.
Develop a system for payment reminders/collections and don’t be afraid to charge a late fee/finance charge on outstanding invoices.
I hope at least one of these tips will help you generate a stronger cash flow into your business. If I can assist you in any way, don’t hesitate to reach out and let me know.
