Research shows that proactivity surrounding accounts receivables produces results. The earlier customers are contacted, the more likely invoices are to get paid.

There are some proven strategies that minimize those lagging payments from customers.

Set payment expectations before starting services or sending products to customers.

Ensure invoices are clear and concise. They should indicate the service or product that was provided, the amount due, the due date, acceptable payment methods, late fees, early payment discounts, payable to name and the business contact information.

Invoice as soon as the service is complete, or the product is delivered. If it is an ongoing service, invoice on prearranged intervals such as specific days of the month.

If the customer is new to the business, collecting a deposit or full payment before completing work gives an indicator of future willingness to pay.

Make it easy to pay invoices. Where possible provide customers with a variety of ways to pay (credit cards, ACH transfers, online payment gateways, etc.)

Many invoicing software programs provide the benefit of automatic reminders. Setting automatic reminder notifications for upcoming due dates keeps the invoice on the minds of busy customers.

Send a gentle reminder the first day that the invoice has become past due. If the invoice is not immediately paid, send consistent messaging at regular intervals that become stronger in tone with each message.

Contact the customer by phone if there is no response to the initial message for past-due invoices. Sometimes emails go to spam, or the customer may have a concern that can be discussed over the phone.

Morgan Morrow provides accounts receivable assistance to small businesses, including but not limited to support with AIA formatted invoicing for general contractors. We are here for training or as a turnkey solution.