Managing business payments correctly - piles of dollars, euros and sterling

When setting up a business one of the most important things to think about is managing business payments and how you are going to be paid going forward.

For many businesses this can be a discussion of cash, cards and even cheques for your products and services, and it can depend on the size of the invoice you send out. Here are some helpful tips for managing business payments correctly to get you started.


Discuss right away

If you want to make your life easier further down the line, you need to think about discussing your business payment plan right away. You can use to help you. This will allow you to choose whether you want up front payments, direct debits and any other type of payment plans for all of your products and services.


Keep costs handy

When you come to invoice for a product or a service that you provide, don’t start to work out the costs at this point because it will just end up slowing you down. Instead, make sure that you have a cheat sheet with all of your costs and other information on it so that you can simply add this on when the time comes if you need it.


A simple invoice

No one wants to read a massive essay of an invoice and see a confusing format when paying for an item. You need to keep things simple and to the point to make things easier for your customer. Use a template for invoices online and fill it out according to what you need. The simplest designs are always the best because they make it easy for people to know what they need to pay.


Invoice ASAP

Always invoice as soon as you possibly can after an order has been completed. This will ensure that your customer gets the invoice quickly and is able to pay you for what you have provided. If they haven’t paid after 7 days, give them a notice. Then send over the invoice again to reinforce your need for the money and to make sure that they don’t forget you.


Add interest

To encourage prompt payment of your invoices at all times, you can give a time limit of payment. After this date, add on some interest to the bill which will continue to rise each day until they pay you. This will always hurry people up because they don’t want to have to pay more than they need to, and it will make sure that you get the money you need to continue running your business.


Stay organised

It is important to always stay organised when you are managing business payments. It isn’t good enough to simply save your invoices in one place, you will also want to save the information of the customer as well as your payment confirmations and order receipts too for your future reference. This will allow you to refer to things in the future if you need to.

Managing Business Payments Correctly

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