How to tackle late payments
Late payments are a problem for many accountancy practices. The right technology can help you get paid on time, enhance your cash flow and increase client satisfaction.
Nearly a quarter of UK businesses struggle to get paid on time, threatening their survival. According to research from the Federation of Small Businesses, solving this issue could add up to £2.5 billion to the UK economy.
These late payments can hurt your cash flow and cause other problems ranging from difficulties to pay staff salaries in time, settle your own due invoices and comply with tax payments.
On this blog we will cover how technology can help you stop late payments and increase your client satisfaction. These are some of the tools that will help you manage your practice every day and get paid faster:
Perhaps the most effective way to get paid fast is to make it as easy as possible for your clients to make those payments. Invoices are traditionally sent via email, which is not the most efficient way of sharing and discussing transactions. Once you send your email, you have no way of knowing whether your client has actually seen it and it is difficult to keep track of what you’ve sent and the whole process.
Client portals such as the one offered by Zoho Books are a fantastic tool that enable you to discuss quotes, update the status of your projects, send invoices and follow up for payments, giving you and your clients full visibility of all your transactions.
The client portal enables your clients to view, comment, accept and decline estimates after you’ve shared them, download and print invoices and view all the payments they have made so far. And you’ll get notified as soon as they look at any bills you’ve send them.
Paying through the portal is as easy as it can be for your clients, who can choose to make full and even partial payments via PayPal or save their card information to reuse in future transactions. They can even forward invoices to their finance team.
Take a look at how it works with this short video:
Surely late payments present a big problem for your cash flow, but also think about all the admin time you need to spend chasing late invoices at the end of each month. Chasing invoices is tedious and monotonous work that takes time and places a burden for you and your employees, who could be spending their time doing more valuable work.
Gaining full visibility of your practice and all your clients can help you with this, which is why Zoho Books supports a useful integration with Zoho Projects.
The integration allows you to create and send transactions in Zoho Books for your projects in Zoho Projects, including invoices, estimates and expenses. You can also use it to fetch timesheets and contacts from Zoho Projects to Zoho Books, as well as tasks, users and bugs that are associated with your projects.
Ultimately, this can all help you streamline your processes, track time and projects better and increase your visibility, so that you can keep track of your work and client communication, and in turn, improve your client relationship.
See it for yourself. Sign up for your free full-featured trial of Zoho Books.