June 20, 2020
Invoice collection is a tricky subject, but there are a few strategies with accounting software that outshine all the others. Consistency creates reliability. You and your entire organization rely on that cash flow.
If you want your customers to consistently pay you on time, you will have to demonstrate that same consistency in your everyday dealings and actions with both your customers and your staff.
Your staff will mimic your behavior, consciously or unconsciously. We are always told to lead by example and that’s the best way to keep your staff maintaining consistent behavior toward your clients. Of course, every person has her own ways of doing things. Without a specific process involved with invoice collection, workflow processes can vary widely from person to person. Implementing invoice automation through your bill payment services is the easiest way to keep processes consistent between staff members.
Consistency among your staff will also ensure that your customers are all treated fairly and professionally. Credit scoring software keeps subconscious biases minimized. Accounting software with invoice automation will keep your system consistent between customers do you don’t have to feel like you are picking on someone. Bill payment services offer an easy variety of ways for your customers to pay you so your staff doesn't accidently discourage certain types of payments which are more difficult to process.
Consistency with your customers is essential to any invoice collection strategy. We always strongly advocate sending reminder emails before the invoices are due. Typically, sending a reminder a week before the due date seems to offer the most effective solution to getting paid on time. It’s just enough time to instill a sense of urgency and enough time to allow them to send the payment. Using invoice software to ensure that it’s done correctly every time takes out the risk of human error.
When you constantly in touch with your customers and always deliver the invoices immediately, send reminder notices, and jump on late payments, your customers will know that you are serious. Either consciously or unconsciously, they will put your bill towards the top of their to-do list because you have demonstrated that you will not let irresponsibility slide. This is not to say that being stern or inflexible is the correct action.
The best strategy is to be politely persistent. Invoice software is a tool that allows you to be consistent without taking up all the time from doing it manually. What would your business look like if your current accounting software could take more off your hands?
BY Alyssa LeBlanc
BY Max Golovnia
BY Alyssa LeBlanc
Armatic Co-founder and CTO