Utilising Technology to improve Cashflow…
One of the most common problems small business owners face is managing their cash flow, and getting paid on time by their clients. You get an invoice out for works completed, with expenses already incurred and paid for, and the client doesn’t pay on time resulting in a cashflow problem for your business.
Thankfully, the cloud technology and automation tools which exist today can enhance your ability to be paid on time by clients, and therefore smooth out your cashflow and reduce the stress in your business. We have summarised below some tips which will be sure to make sure you get paid faster:
- Include a payment gateway on your invoices such as Stripe, so that when the client receives their invoice via email they can ‘Pay Now’ and simply enter their credit card details – these payment gateways link to Xero, so would make your reconciliation process a breeze also
- Get paid on the spot utilising a mobile card reader so clients can pay directly with their credit card rather than you needing to send an invoice after the fact – we love Square, being affordable and also integrated with Xero
- Set up automated invoice reminders to save you time in chasing clients for payment – Xero has this facility and you can set it up to be as flexible as you like, and get more demanding the later the invoice becomes
- Offer your clients discounts for paying up front – it may be 5%, and this can have a great impact on your cashflow
- Of course, there will also be those bad payers that you may need to send to the debt collectors, if this does happen we can recommence Professional Collection Services where debts can be submitted online – we recommend reviewing their commission rates firstly
If you would like any assistance in setting up the above, or discussing what may be suitable for your business, please do not hesitate to contact your advisor at HTA Advisory.
