Are you a business owner consistently facing late payments and your overall progress slowing down?
Well, this article is for you. By reading this, you can understand the reason behind the late payment of your customers and how to reduce the number of late payments.
Sending invoices for your customers will eat most of precious your time. If that time can be saved and used for your business development, who would say no to that? Yes, with automation, it can be possible.
Avoid lengthy, boring, and manual tasks with automated invoices for sending invoice reminders to your customers. This saves you plenty of time which can be productively used for your business development.
Another difficulty is to make the customers pay. If you make the payment as easy as a single click, problems like late payments can be easily avoided. With the digital and quick payment method, your customers will find it easy to pay, automatically reducing late payments and increasing your cash flow.
As we said before, late payments are the greatest fear of business owners who are all facing cash flow issues. If this issue is not addressed, your company will fall into a critical stage. If you’re facing many late payments, you can do the following to encourage the customers to pay within the due date.
You can offer a discount for a prompt payment which will make more than 85% of your customers pay within the due date. Some entrepreneurs have seen Zero-late payments for three consistent months.
This allows your customer to save money and add business credits which in turn gets you paid sooner.
Instead of analyzing each late payment, look for ways to improve your overall accounts receivable process. Consider using primary issue analysis as a systematic method for identifying and resolving challenges' underlying causes. This approach consists of five phases.
Take a look at your Accounts Receivable Management System, your existing standard practice, your tools, and your overall work environment to gather evidence. Examine the evidence and make a well-informed proposal later on.
Try to figure out the problem in your AR Management system with the evidence you gathered.
To find the root cause of your problem, identify cause and effect and investigate the situations in which they interact.
Then, depending on the problems you've identified, build a practical and implementable solution that has a beneficial impact while avoiding causing further issues.
Generate a report that includes the discovered cause and the developed solution to keep you on track.
Manually following up with the customers will consume most of your time leaving no time for concentrating on other development tasks.
Adding the invoice number and due date
Reattach or re-mention the original invoice
Keep the invoice copy short & professional
Add instructions for making the payment
Consider doing all these tasks manually and think of the time it takes to complete them for all the invoices for all your customers.
Automation is the new revolution in the accounts receivable process which transforms all manual tasks into automated giving you time to spend on other development tasks. Many organizations have seen a 90% increase in their cash flow and productivity with automated workflows.
Most of the late payments and cash flow problems occur because of improper communication with the customers. If you do so, your company will also come under the list.
But with automated accounts receivable management system, you can maintain proper and streamlined communication with your customer by
sending invoice & pre-invoice reminders for the product/service you offered,
Customizable, efficient, and automated workflows,
with a futuristic customer portal with a quick payment option,
with an insightful dashboard with real-time metrics
Reduce late payments and increase cash flow by automating your receivables process with our accounts receivable automation software and streamline invoice reminders as well as workflow action with a significant increase in cash flow and productivity.
If you think that this is useful for you and wish to learn more tips and tricks about the accounts receivable process, kindly visit the Maxyfi blogs.