December 3, 2011
Most businesses function in a give and take fashion - while you may be providing a service, you are most likely always paying someone else to supply a service to you, and so on. This chain of supply and demand means that you understand the need to pay on time, and therefore, in theory should be given the same courtesy by your suppliers. Unfortunately, getting paid on time, every time, is a rare luxury, but with a few simple strategies you can attempt to make it a more regular occurrence.

1. Credit Card Sales
Start by encouraging credit card sales. Set up automatic deductions wherever possible. This way, you are ensured your payment, no matter what monetary ups and downs your customers may be experiencing. There is a QuickBooks offering that can be set up to run automatically; best of all it matches your invoices to the bank payments seamlessly.

Another way to speed things up is to use credit cards while you're on the road. Use your Smartphone with a credit card attachment to get paid right on the spot! Again, since we're a QuickBooks Pro Advisor firm, we're an advocate of their GoPayment solution. And just like the automatic transaction above, it can be a great addition to your invoice system.

2. Incentives
Offering a small reward or reduction for advance, on time or payments in full can also encourage your customers to stay on top of their finances. Consider all the ways you have been enticed into making full, on-time payments to your suppliers and engage those methods.

3. Deposits
Always insist on a deposit. Whether you are providing a product or a service, tangible or not, a deposit is necessary. Especially if your deliverance is laid over a long time line, and dates could be pushed back or adjusted, you want to rest assured that you have collected at least partial payment in case of delays or last minute pull outs. Obviously payment in full is the ideal here, but when not possible, a deposit ranging from 20-50% is suitable.

4. Billing & Invoicing
Be diligent and creative when it comes to the paperwork. Make sure that a written contract is always in play and that both parties are well aware of their responsibilities, with no grey areas. Do not be afraid to shorten billing cycles and request payment at 14 days, instead of the usual 30; just make sure it is clear. Make sure your invoices read loud and clear the due dates as well as the penalties for late payment.

Emailed invoices can work well here. You can easily add a link on the digital invoice to a payment portal that can make it quick and easy for customers to settle their account. QuickBooks again offers this solution and one that we've used in our firm.

5. Collection
Don't be the proverbial ‘rug’ and allow yourself to be stepped on; If your situation comes to a standstill and payment still lies on the line. Bill collectors and small claims court can help you get what is rightfully yours.

If you have any questions about any of these solutions or would like more information, please don't hestitate to give either myself, Sue or Debi a call at (480) 517-0988 and we can point you in the right direction!

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