SMEs know that stressful feeling when invoices get paid late
Every minute they’re not paid can hinder growth and distract you from staying laser focused on building on what you already have.
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The fact remains that 68% of invoices get paid late and average up to 55 days from the time you issue them. What makes things worse is hearing customers say they didn’t receive the invoice or “I thought I paid that already”.
You know the effect it has on you, you know the impact it has on your cash flow and you know that every business is in the same boat, but what could you be doing just 10% better than the guy/girl down the road to get paid not necessarily on time (let’s face it that’s hard) but quicker than you do now?
Let’s imagine you could stop thinking about asking yourself if you followed up some of your customers recently or followed up your staff.
Better yet let’s just say if you could automate a lot (and I do mean a lot) of your follow up “soft touch” collections you’d free up at least the emotional stress of worrying about if you sent out collection reminder this week.
The answer to all of this is in the cloud
We’ve painted the picture and you know that you need something in place, it’s time to start implementing some new tools this year.
Below are 5 tools that’ll help you de-stress over payments:
InvoiceSherpa (we like the name)
It pretty much does everything and pretty much integrates with every cloud accounting software package around. From automated reminders, text messages and even phone calls you can put everything on auto-pilot.
Debtor Daddy automates the follow-up of your accounts receivable, getting you paid while you’re off doing the work you love.
Fully automated debtor tracking: It sends polite persistent emails to customers about their unpaid invoices to pay on time. These emails are sent automatically so you don’t have to
Innovative Online Debt Management (IODM)
You simply upload your outstanding invoices and IODM automatically schedules the reminder letters, debt collection letters workflow, all with SMS/TXT messaging. IODM is a ‘select and forget’ receivables reminder system that takes control of your communication needs to your debtors.
Xero – Accounting software
Although not a stand-alone offering it’s available if you’re using Xero. You can use the invoice reminder option to switch on “Invoice Reminders” for customers to be automatically contacted when they haven’t paid an invoice and it’s overdue.
The above tools are all cloud-based software and you’ll get the most out of them if you are using a supporting cloud accounting package. Some of the above can be used without accounting software however, you’ll need to manually load in your invoice data which kind of defeats the purpose of automation.
So do something proactive this year about getting paid sooner and really think about how you can improve your payment times by spending a small amount of time adding on some automation.