Four ways to get your clients to pay on time
Following up on invoices can be unpleasant, but it is still one of the most important things you need to do when you are running your practice. Here are some of the ways you can make the process easier.
Dealing with unpaid bills and payment reminders can be annoying and frustrating as well as detrimental for your firm, as it makes you lose valuable time chasing clients, time that you could be spending on other sides of your firm.
Here are a few tips for making sure clients pay you on time without having to chase them down:
1. Communicate your terms
You can’t expect your clients to know your payment terms unless you tell them. Whatever the terms of your practice are, let your customers know from the beginning.
Remember to put a payment date on every invoice (you’d be surprised at how many people forget to do this). State your payment terms in your contract and be sure to direct new clients to these terms before they sign.
2. Consider late payment charges
This can be the best way to save hours chasing clients for overdue payments. Just remember to highlight this in your contract and make your clients aware of it from the beginning.
3. Simplify the process
If your payment process is easy, you are more likely to get paid on time. Make it obvious how to pay, letting them pay online if possible and using a programme like ClearBooks that gives them a couple of different payment options, for example, PayPal, credit card or bank transfer.
4. Follow up on late invoices
Although it can almost feel embarrassing to start ‘harassing’ clients for unpaid invoices, don’t put off. Scheduling invoicing and payment reminders in your calendar or take advantage of accounting software that does a lot of the work for you. Using ClearBooks, you can easily keep track of unpaid invoices and you can instruct the system to send automatic reminders and prompts to any late-paying clients.
Do you like the idea of stop chasing unpaid invoices? Sign up for a free trial of ClearBooks and find out how our automatic reminders and simple payment interface can help.