Sending a payment-due reminder is the best way to make sure you get paid on time. It’s trivial, time consuming and most customers will pay eventually so sending reminders is often overlooked or inconsistent at best. If most customer pay regardless, why waste time sending reminders at all? For starters, extending credit to customers comes at a cost, not just in funds not being available when you might need them, but also a direct cost. For example, if the money was sitting in your bank account it would be earning interest, you could be investing in additional equipment, software or personal to increase revenue, etc. Lowering DSO (days sales outstanding) can have a profound affect on the success of your business.
You have a hundred things to get done at any one time, if not more. Sending out reminder emails to all your unpaid accounts receivable clients is probably pretty low on the to-do list. Bigger companies have a person or department just for getting account receivable payments.
Reminding people to pay can be tricky. You have to craft a polite, professional and understanding email. By sending a consistent reminder on the same day every month, your clients will get into the routine of seeing your email on the same day month after month, and work paying you into their business process.
Automating the reminder takes the work entirely out of your hands, freeing you up to do all of the other important tasks that your business needs to thrive. Plus, you still get all the benefits of being paid faster. Transitioning to an automated reminder system can still have the personal touch of your normal reminder emails by writing it into the templates. Consistency is no longer an issue and you can set the reminders to be sent as frequently as needed.
Software excels at taking tasks out of your to-do list and putting them on auto-pilot. Automating your invoice reminders is the same thing as setting your coffee machine to brew a 6 a.m. every morning. You get all the benefits and it saves you time and effort.
Learn more about Armatic's Accounts Receivable automation.