Unless you have an established accounts department, a challenge for some businesses is how to manage customer payments. It is easy to forget to send invoices or chase payments and this can be catastrophic for cash flow.
So to avoid getting into problems here are some ways to manage customer payments.
Keep on top of your invoicing
As soon as you let invoicing slip one month you can end up invoicing late every month. Believe it or not your customer will be happier if they receive their invoices on time and not all at once if you happened to leave it late the previous month. Plus you should get paid quicker, which is good for business.
Be clear with your invoices
A small mistake on an invoice may lead to problems if your customer thinks you’re not on the ball. You will find that in some cases your customer will use it as an excuse to ignore an invoice and dispute the amount. This can cause you all sorts of problems later.
Always make sure your invoices and payment deadlines are clear and on the right dates.
Consider Giving incentives for customers who pay early
This of course depends on your business, but it can be a good way of getting the money in early rather than waiting. Incentives can come in the form of discounts for customers who are willing to pay up front or in good time.