Low Cash Flow Could Put You Out Of Business

12 Ways to get money in faster

  1. Issue invoices promptly and with enough detail that clients remember what product or service they are paying for.
  2. Have a standard price list for most items and services. Every transaction should not be a price exception. Review and update the standard price list periodically.
  3. If you are too busy with day-to-day responsibilities to generate invoices, delegate the task to someone else. (Delegating is much easier if you have standard prices and procedures).
  4. Enter checks received in QuickBooks as they are received. This will provide you with a correct and current list of outstanding invoices.
  5. Develop procedures for following up on unpaid invoices and a set schedule for doing so. You can easily outsource or delegate this task.
  6. Deposit checks promptly so they do not get lost or misplaced.
  7. Save yourself all the above steps above by accepting credit and debit cards. Many phone apps allow you to receive payment immediately even if you do not have a brick-and-mortar office. PayPal also lets you receive payments on the spot.
  8. For large projects, receive a retainer or deposit before starting work.
  9. If the invoice is based on work-in-progress, send the second and third invoices at the appropriate times. Do not assume the customer will remember to pay the installments on time.
  10. If a client has substantial unpaid invoices, refuse to do any more work until the client pays the outstanding invoices.
  11. If clients’ charges are the same every month, set up an automated ACH withdrawal from their account. No paper, no late payments, nothing to remember.
  12. If your email follow-ups about payment get no response, call the client or mail a copy of the invoice with a handwritten note stating how overdue it is. Emailed invoices do sometimes get lost in the deluge of emails.

 

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