Tips to Reduce your Debtors
From Kevin Ryan, Director, Smartfee
www.myonepoint.com.au
Your may have considered one or two of these ideas for improving your receivables process, but in case you haven’t, let’s look at some basic areas to cover:
- Put the due date on your invoice
Don’t use a phrase like “payable in 14 days”. A date will have a better chance of sticking in a clients mind or them putting it in their cash flow budgets before the date. Use a phrase like “This fee is payable before or on the 15th of February”. A set date will also allow you to better track the debtor, and give you a point from which your collection process can start, essentially assisting your collection because the client is aware that this is a date from which they are now overdue.
- Remove the days overdue
If you are using statements then take the positive step to remove 30, 60 and 90 days. By advertising that an amount is beyond your payment terms and into 30, 60, 90 and 90 plus days you are inadvertently advertising the fact that you will accept payments at these very late stages. This is simply sending the wrong message to clients.
- Put your bank account details on your invoices
I am amazed at the number of firms I encounter that still do not put their bank details on their invoices. Most of your clients will be using internet banking on a regular basis with bank transfers via the internet being today’s most common method of transacting. By adding your bank details to your invoices (and again if your persisting with statements) you are advertising probably the best and easiest method of getting paid.
- Advertise your payment options on the bottom of the invoice
As with printing of your bank details on your invoices, you should also advertise any additional payment options that your firm offers. Have all the payment options available… EFTPOS, BPay, direct debits, online credit card, Smartfee (The monthly payment option for accounting fees).
http://www.myonepoint.com.au |
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Tips to Reduce your Debtors |
