01 Sep The 7 best ways to get paid faster
Doing work for your customers is one thing. It’s another to ensure that you’re paid, and on time.
Unfortunately for many small businesses, the latter takes up as much time as the work did itself, and it’s likely the task that gets done in the evening or weekend to keep your working day free to do jobs (or the other way round depending on your trade) – but in almost all cases encroaches on the time that should be spent doing something else.
So, how do you maximise the chances getting paid faster, without needing to spend lots of valuable time and energy on the task?
The key is to use the functionality of Xero, as well as a few key apps that integrate with Xero……
1) email your invoices – it sounds simple, but just clicking the email button rather than the print button will not only save time and cost and keep you paperless, you’ll get your invoice immediately to your customer, speeding up the whole process. Cost to implement – FREE
2) set up invoice reminders – use the functionality of Xero itself to automatically send emails to customers reminding them that they still owe you money. Cost to implement – FREE
3) integrate Chaser – if you find invoice reminders too restrictive in the number and type of templates you can set up, Chaser does a great job of sending invoice reminders. Chaser integrates with Xero. Cost to implement – around £1 per day.
4) set up Stripe or eWay – ideal when you’re not physically seeing your customer again soon. Allow your customers to pay you by card as soon as they receive your invoice, as this speeds the process up and you’re more likely to receive payment early if you make it easier for your customers to pay you. Both integrate with Xero. Cost to implement – usually monthly fee and transaction fee based, but worthwhile to speed up cash inflow.
5) consider a card reader, such as izettle – ideal when you’re in the trade of seeing customers very regularly (an added benefit, if you deal in cash, it’s much safer to have a card reader with you instead of carrying around lots of cash!). Integrates with Xero. Cost to implement – no monthly fee but transaction fee.
6) allow customers to pay you by standing order – ideal when you invoice out the same amount on a regular basis. Standing orders are set up by your customers and they do this either in their online banking or they can visit their bank in person – you can’t control the payment. Cost to implement – bank charge of a few pence per transaction received (actual cost varies per bank).
7) set up gocardless – functions like a direct debit, so you’re in control of what you take from your customers once they’ve signed up and authorised you to take payments from them. So it’s less hassle than a traditional standing order as you have more control over amounts. Integrates with Xero. Cost to implement – from 1% per transaction capped at £2 per transaction.
Just with a bit of consideration to ensure you set up the most effective systems for your business, for a relatively small price per day, you can create a rock solid automated system that maximises the chances of getting paid faster. Any of these ideas are vastly cheaper than either yourself or an employee spending time on the phone or retyping emails straight from Gmail/etc.
And we can help and advise in getting any of these set up.
Are you ready to start getting paid faster?