Getting Paid On Time

Getting Paid On Time Each Month

Many businesses struggle to get paid on time because the right procedures are not in place and followed through on on a weekly and monthly basis. Here is a quick guide and a few general tips on how to prevent extended debtor days, and help you get paid within your credit terms. overdue

Set Credit Terms.

This is an obvious one but its remarkable how many businesses don’t agree these prior to doing business with a new client. If these are set from the start its going to set the tone for doing business with a client. In eFolio Accounts you can set credit days per individual client. Go to your contact summary, click “Edit” and under “sales and purchase items” you can set sales terms in the number of days. This will flag aged Debtors when you do a report.

Send Invoices Promptly

Its best to agree with a client when the invoice will be issued. Clients can become annoyed if they receive an invoice too early, but if you dont invoice on time extra debtor days are provided. Think of it like the client getting an interest free loan!

Send Statements at the start of the month, every month. 

Ensure your clients get statements on the first of each month. eFolio Accounts makes it easy to do this on the customer dashboard. There is also an Aged Debtors report for those slow paying clients. Clients that are outside credit terms, call them. Make notes on the customer dashboard so you can follow up next month and quote the conversation you had the previous month.

Follow up by email & Phone Appropriately

Debtor days are the number of days that a clients invoice is overdue. Only you will know how much follow up is required, but in many cases if you send statements and follow this guide, your customer wide Debtor days will fall.

Keep your Sales Invoices up to date. 

Don’t let your sales invoices lie unpaid in your software if they are paid. These should always be kept up to date and marked as paid. This keeps your team up to date when logging in.

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