10 invoicing tips - part two

Encouraging customers to buy your product is one step, encouraging them to pay can be a completely different challenge. There are many ways you can motivate your customers to make payment and ensure your invoice remains a priority for them. 

Last week we looked at five initial tips you can implement to help improve your invoicing, this week we'll take a look at five more.

6. Include different payment options

All your customers are unique and as a result they conduct business differently. Therefore it's likely they have different preferences when making payment so it's good to have a range of options available when invoicing new people. By providing a good selection of payment methods you increase the likelihood of receiving a prompt payment.

7. Track all your invoices

In order to stay on top of payments as and when they fall due, it's essential you track all your invoices. The best way to do this is with an excel spreadsheet that can then sort the information for you. Sorting your spreadsheet by due date and invoice number will make it even easier to track your receipts and initiate communication with those who are yet to pay.

8. Charge interest or late fees

When identifying your payment terms, don't be scared to penalise those customers who fail to make payment on time. Interest and late fees give people a reason to prioritise your invoices and at the very least will motivate people to provide an explanation in the instance they can't make payment on time.

If you are uncomfortable charging late fees here is more information you can consider before making the decision.

9. Send statements

One way to help motivate your customers to make payment is by sending them a friendly statement that reminds them of the amount owing and the date it was due. Although this is a less personal way of informing your customers it's more effective as a friendly reminder than a phone call or reminder letter.

10. Offer assistance

Make it clear on your invoice that help is available to your customers if they need it.  Like interest and late fees, offering assistance improves the likelihood of you being notified in the instance a customer will be late in making payment.

Remember, your customers have other invoices they have to pay as well and some times there will be certain circumstances that contribute to late payments.

Still struggling with customers who won't pay? Here are some tips to consider before making another credit sale.

To make sure your invoices comply with government standards visit the ATO website for more information.

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