Here are five ways to start the new financial year with immediate cash.
The end of the financial year is around the corner: Do you have unpaid invoices collecting dust? Now’s the time to tackle them and get your invoices paid. Replenishing your accounts asap will ensure your business has the cash to hit the ground running in 2021. To help, we’ve compiled our tops tips for improving your invoicing habits and avoiding a headache come tax season.
Tip 1: Give payment terms a paper trail
Nothing triggers a chase up like a client missing their payment deadline. To help avoid it, communicate your payment terms up front and often. Got a new client? Let them know exactly when they should be checking their inbox for a bill. Keep noting the date in quotes, estimates, and emails. And of course, on the invoice itself. If a client passes a due date, you’ll be ready.
Tip 2: Avoid catching clients by surprise
Do yourself a favor: Start sending clients estimates of your invoice to approve in advance. Sure, it’s one more email to add to your process, but it’s 100 percent worth the extra five minutes it takes to write it up. Not only does it ensure that everyone is on the same page, but you’ll be able to shut down any invoice payment disputes real quick.
Tip 3: Send invoices regularly (and don’t lag)
You can train clients on when you’d like to get paid. Seriously. Start by creating an invoice routine with regular timelines that you can realistically keep. Aim to be prompt and, most importantly, consistent while you condition clients. After a few times, clients will get into a rhythm of looking out for your email.
Tip 4: Make getting invoices paid easy
The easier it is for clients to pay, the faster you’ll get the money. One way to facilitate this is through payment options beyond checks, including invoicing apps, mobile credit card processors, and platforms that connect directly through email. Some payment apps are free, while others charge fees for expedited payments—but don’t let the latter deter you. You can always factor the expense into the cost of goods or charge an additional fee for customers.
Tip 5: When in doubt, sell.
If following all of the above hasn’t bumped up your cash flow, consider selling your invoices. Crowdz’s auction platform enlists third-party funders—all of whom are pre-vetted—to bid on your receivables. The best part? You get to view all contending offers before making a final selection and collecting immediate payment. It’s easy to get started, and there’s no limit to the number or frequency of invoices you sell.