want clients to pay their accounts on time?

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want clients to pay their accounts on time?

If you want clients to pay their accounts on time, these are just some of the things you must do. The checklist below is by no means comprehensive but if all of these are implemented, you’re well on the way to getting most of your invoices paid on time.

1 Create a written-down Collection Procedure; make it readily accessible to all concerned.

2 Empty WIP and send out fees (interim fees for longer jobs) as soon as work is completed.

3 Introduce 14-day trading terms (if you don’t have them already).  

4 Don’t rely on statements.  They don’t work as reminders.  Send email/letter reminders instead. (click here for suggested wording.)

5 Classify every account into one into 1 of these 4 categories. Take the appropriate action:
– “The Untouchables” – cannot/should not be followed up.
“For Special Consideration” – complicated, involved – time-consuming, do last.
Just Due for Payment” – not paid but only just overdue.
“Long Overdue for Payment” – small balances but long overdue.

6 Have a “pay-by” date & the firm’s bank account and BSB details on all invoices.

7 Chase selected accounts weekly (ie: those that have not responded to standard reminders or where promises to pay have not been kept.

8 If you have several Partners, don’t waste time seeking permission to follow up clients with unpaid fees; switch the onus on them to advise “Accounts” which ones should not be chased. (If they don’t … out go the standard reminders!)

By | 2017-08-14T03:41:57+00:00 September 3rd, 2011|miscellaneous|1 Comment

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

One Comment

  1. michael todd September 12, 2011 at 12:48 am - Reply

    Read what Debbie Weinrich of American Express had to say about this post (in LinkedIn) —– Here is what I use to do (not in that role right now). I had built relationships with the appropriate person to approve or pay the bills. If I had not met them in person I had notes on all the customers I would ask about a new baby to weddings in the family etc. (small talk). When a bill went out I called before it was late. Did you get the statement? Was everything to your expectation? Good service, good product etc…Depending on the urgency and size of the bill I could offer a prompt pay discount if they paid “before the due date”. It does not change or alter their agreement just strictly a bonus payment trigger that worked for me. I also remembered the customers that counted during the holidays with gifts that matched the size of the company, even if it was a small decorated cookie to the AP person to cookies for the office. It helps them to select you first when funds were limited.

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