No business can operate if they aren't getting paid. Michelle and Shawn cover all the reasons you may not be getting payments and what to do next, with these 6 tips.
Tip #1
Take a look at your payment procedures: How are you accepting payments? Are you offering enough, accessible modes of payment? How are you sending invoices? Are you clients receiving and opening these invoices? Are you utilizing an accounting service that tracks paid invoices?
Tip #2
Communicate with your clients: Before delivering products and services, it's okay to over communicate. Let your clients know what to expect including how they will be invoiced, when they will be invoiced, and what are the payment timeline terms.
Tip #3
Determine the problem: Give your clients the benefit of the doubt. Maybe the invoice went to junk mail or was accidentally thrown away. Maybe your client is struggling financially and could benefit from a mutual/unofficial payment plan. Maybe there was a problem with the product or service. Maybe there were unexpected fees and charges included on the invoice.
Tip #4
Have the hard conversations: When an invoice has gone unpaid, discuss with the customer solutions to their problem. Make right any wrongs on your behalf (poor services, information about charges, etc.) or include late fees if necessary.
Tip #5
Send an official letter: You’ve examined your processes, addressed problems, you’ve communicated with the customer, and you still haven't been paid. Send an official letter. This is a clear and adamant letter addressing the nonpayment with the customer and your terms to follow.
Tip #6
Debt Collections: Have your attorney draft a letter and determine whether this payment is worth following through to Debt Collections. Debt Collections will incur fees for you as a business that include court fees, attorney fees, etc.
We understand getting paid is important. If you are frequently experiencing nonpayment, pay close attention to these tips and make changes accordingly. In this episode, we also briefly address how nonpayments can affect your accounting financials and your taxes.
If you found this episode helpful, please like and subscribe to us on social media!
What’s Inside:
Mentioned In This Episode:
Modern CPA Online
ModernCPA - YouTube
No business can operate if they aren't getting paid. Michelle and Shawn cover all the reasons you may not be getting payments and what to do next, with these 6 tips.
Tip #1
Take a look at your payment procedures: How are you accepting payments? Are you offering enough, accessible modes of payment? How are you sending invoices? Are you clients receiving and opening these invoices? Are you utilizing an accounting service that tracks paid invoices?
Tip #2
Communicate with your clients: Before delivering products and services, it's okay to over communicate. Let your clients know what to expect including how they will be invoiced, when they will be invoiced, and what are the payment timeline terms.
Tip #3
Determine the problem: Give your clients the benefit of the doubt. Maybe the invoice went to junk mail or was accidentally thrown away. Maybe your client is struggling financially and could benefit from a mutual/unofficial payment plan. Maybe there was a problem with the product or service. Maybe there were unexpected fees and charges included on the invoice.
Tip #4
Have the hard conversations: When an invoice has gone unpaid, discuss with the customer solutions to their problem. Make right any wrongs on your behalf (poor services, information about charges, etc.) or include late fees if necessary.
Tip #5
Send an official letter: You’ve examined your processes, addressed problems, you’ve communicated with the customer, and you still haven't been paid. Send an official letter. This is a clear and adamant letter addressing the nonpayment with the customer and your terms to follow.
Tip #6
Debt Collections: Have your attorney draft a letter and determine whether this payment is worth following through to Debt Collections. Debt Collections will incur fees for you as a business that include court fees, attorney fees, etc.
We understand getting paid is important. If you are frequently experiencing nonpayment, pay close attention to these tips and make changes accordingly. In this episode, we also briefly address how nonpayments can affect your accounting financials and your taxes.
If you found this episode helpful, please like and subscribe to us on social media!
What’s Inside:
Mentioned In This Episode:
Modern CPA Online
ModernCPA - YouTube