Getting paid is the toughest part to accomplish and it is the crucial phase of running a business. Especially during extenuating circumstances like a recession, most businesses are faced with a major disaster with debts not getting paid back by their customers. Hence, it is one of the most vital parts to give attention to. We cannot initially pressure our customer as we may loose them or they would be adopting certain rules in paying back the amount. Understanding the situation of the customer would help reducing the risks in getting paid. This article highlights to you six vital things you should espouse to get your payment on time.
Generating an Invoice:
It starts from the point that you raise an invoice. The invoice has to be raised once the job is done or the product sold to the customer. There should not be any delay as it is really critical for you to get paid on time. You should understand that you'll never get the payment if they don't have the bill. Hence, it is advisable to raise an invoice and keep track of the transaction once the job is done.
Provide a clean invoice:
While raising an invoice, you should remember the things that should be mentioned sequentially in order to make it concise. It's not required to be elaborate yet the customer and the service provider should clearly understand the transaction details. You should include the important things such as due date, the invoice raised for, the date of issue and any other terms that abides. It is equally important to mention the penalties for late payment. There are softwares that allow you to customize your invoice in accordance to your desire. You should create your invoice precisely so that you avoid any chaos during auditing.
Hitting the payment deadline:
It is always good to know the accounting practice of your customers. Large scale industries adopt payment cycles and they may have the habit of sending out the payments once or twice in a month. Hence, it is wise to highly prioritize the task and get the payment during the first cycle. If we delay our invoice process, we have to wait till the next payment cycle. You should keep priority tasks in your mind first so that it would be easier to close the transaction without hassles. It would make your accounts cool and clear.
On time follow up:
Just as you need to get your payment on time you also need to do a follow up call promptly. You could call your customer 10 days before an invoice due date so that it would allow them to make necessary arrangement for the money. You can wait till 30 days after the payment's due date. If you have not received the amount, you will have to make a collection call.
Collection calls procedure:
Being rude or forceful is not going to help you to get your money; instead it would make them more reluctant in paying the bill. You should be more balanced in your conversation. You are not required to be either polite or harsh.
Not to give up:
If you still face issues regarding getting paid, you must continue following up on them. You could continue making calls regularly until you get the proper response. If they are not responding to your calls, you can visit them in person. If you failed doing all the above, you can get in touch with the collection agency or may be your lawyer. Most collection efforts would come to an end with the collection calls itself.
About the Author:
Adeline is an expert author of
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Professional Accountants from all over the world.You can visit
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202
Date Published :
Nov 9 2009