12 Ways to get money in faster
- Issue invoices promptly and with enough detail that clients remember what product or service they are paying for.
- 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.
- 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).
- Enter checks received in QuickBooks as they are received. This will provide you with a correct and current list of outstanding invoices.
- Develop procedures for following up on unpaid invoices and a set schedule for doing so. You can easily outsource or delegate this task.
- Deposit checks promptly so they do not get lost or misplaced.
- 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.
- For large projects, receive a retainer or deposit before starting work.
- 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.
- If a client has substantial unpaid invoices, refuse to do any more work until the client pays the outstanding invoices.
- 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.
- 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.