Do you have a tip or a system that help you collect from your clients faster?
There are some great tools available to help you with this!
The main one is just the ability to accept credit cards. Many people avoid accepting credit cards because of the fees, but when they try it they find that the improved cash flow timing gives them so much more freedom to do what they need to when they do it. It ends up being very worthwhile.
Another option is to really look at the payment terms you are offering to your clients. If clients have a habit of paying slowly, but you aren’t communicating your expectations with them, do they even know there is a problem?
Try offering an incentive for pre-payment or extremely prompt payment. Some companies give a 2% discount when a customer pays within 10 days, then the invoice is DUE at 30 days with no exceptions. If someone pays after that 30 day point, charge them interest.
Also, don’t continue to service clients who are notoriously bad at paying. There are better ones out there who deserve you attention more.
Ingrid Edstrom is a bookkeeping nerd and CEO of the award winning bookkeeping firm, Polymath LLC.