Tips for Chasing Invoices From Your Clients

Posted 18 Feb

Tips for Chasing Invoices From Your Clients

As a business owner, it is critical that you give yourself the best chance to get paid as soon as possible whilst maintaining client relationships. Some simple strategies can help this process.

When you’re a business owner, asking for payment on overdue invoices can be a delicate matter. If you don’t have an accounts person or department, sometimes you’re trying to secure new work and chase invoices from the same person. That can be an awkward tightrope to walk.

Here are some tips for chasing payments while maintaining customer loyalty:

• Automate reminders - Set friendly payment reminders that go out automatically – they tell clients they’ve missed a payment without making it personal. It’s like your invoicing platform is giving them a nudge, rather than you doing it yourself. You can sign off with just your business name, rather than your own.
• Find out who’s behind the payments - Is there another person at the business who’s in charge of accounts or payments? Ideally, you want to be selling your services to your usual contact and chasing someone else to pay your invoices.
• Set expectations when you negotiate the job - Firm and clear payment terms make it easier to get paid faster and keep that cash flowing. Set out your terms up front – it’s much easier to talk about your payment expectations when you organise the job, rather than once the invoice has been sent. For persistently slow payers, consider offering an early payment discount or ask for more money upfront for the next job.
• Be nice, but firm - There’s no need to be rude or aggressive to your clients when chasing payment; you want to maintain a positive relationship. However, at some point you need to cut off their credit. Often saying ‘I’m very happy to do that for you, just waiting on payment of that last invoice’ will give them the impetus they need to pay you. But if they persistently don’t pay, no matter how much you like the client, you’re not providing a free service. Stop working for the client and chase those outstanding invoices more assertively.

Contact your WDF Professional team member if you would like to discuss further how we can help you. Phone 02 6921 5444 or email accountants@wdf.com.au.

As accountants based in Wagga Wagga, we don't just crunch numbers and put figures in boxes, we provide a carefully researched and tailored accounting solution that suits each of our clients.