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5 ways to get paid faster

5 ways to get paid faster
Tuesday, July 24, 2018

Late payments affect businesses of every size across all industries. In some cases, it can cause more than just a headache for you as the owner – it can create often very difficult-to-manage cash flow problems. There are, however, ways that you can reliably decrease the time it takes to get paid by your clients.

The problem of not getting paid on time

There are enough hurdles that you have to overcome when you have a business to run. When you aren’t being paid on time, there are three more difficulties that could come your way:

Cash flow issues

According to the Federation of Small Businesses, one in three businesses face cash flow difficulties as a direct result of late payments.

Your cash flow is important because you need it to pay for everything else in your business. The amount of money that you have coming in and going out of your business determines everything from when it’s the right time to grow your business to when you need to consider cutting your employees’ hours.

Fixed costs

Making sure that you have enough money to cover what is definitely coming out of your account each month is essential. Your fixed costs include your employees’ wages, your office rent, and any software subscriptions you currently have.

Lack of security

Having money in reserve for your lean months gives you both peace of mind and breathing room. It’s always a good idea to set some cash aside for a rainy day (unless you are an umbrella manufacturing company, of course).

Getting paid on time means that you don’t have to dip into your safety funds in order to keep you afloat.

How to get paid on time

Panthera recommends the following ways to the business owners we work to bring down the length of time it takes to get paid on their invoices:

Inform your clients beforehand

If your clients don’t know that they need to pay their invoice within a week, then they might make the assumption that they’d still paying on time a month later. By making it explicitly clear when you are expecting to be paid by, you can remove any ability they have to plead ignorance.

Don’t wait to chase your invoices

If your problem is that you are getting paid late but you aren’t chasing up your remaining payments, then you’re only adding to the time it takes for the money to see your account. Start following up your invoices as soon as they are overdue to make sure that they aren’t delayed any further than they have to be.

Give your clients options

The easier you make it for your customers to pay, the more likely it is that they will do it on time. You might want to consider introducing direct debits, online banking, and even postal options for your clients to choose from. A recent study by Xero (UK) showed that offering clients a way to pay by credit or debit card reduced payment times from 38 days to 19 days.

Have a structure to follow

  • Send an email on the first day the payment is late,
  • Call the client once another day has passed,
  • Email them again after a week,
  • Call them one last time after two weeks,
  • Write a formal warning after the third week.

This level of consistency will help your clients know that you don’t take late payments lightly. Be careful with those clients who can’t afford to pay as they may be experiencing similar troubles to you – showing sympathy and understanding for a client going through a period of financial distress will be rewarded later with their continuing custom.

We’re here to help you

Call us today on 01235 768 561 or drop us an email to enquiries@pantheraaccounting.com for advice and support on chasing overdue invoices – we’ll be back in touch with you shortly.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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