One of the most difficult aspects of owning a business (and one few people think about when starting a business) is managing overdue invoices. When clients refuse to pay, don’t pay on time, or ignore your attempts to collect payment, it’s tough to know what to do. Late payments and unpaid invoices can hurt your cash flow. But as a small business owner, you don’t want to jeopardize the client relationships you’ve worked so hard to build. At Ten Key, Inc., we understand where you’re coming from. That’s why we now offer a key service for our clients: Accounts Receivable Management.
Here’s how our Accounts Receivable Management service works:
Once you let us know that you need help with this process, you can send our Accounts Receivable Manager a list of overdue invoices that need attention. Or, our team can review overdue accounts with our Accounts Receivable Manager on a regular basis and let you know which ones need follow up.
Our Accounts Receivable Manager will then contact the account holders to remind them of the overdue invoice and arrange a payment or payment plan. Thanks to the upgraded phone system from Beacon Telecom, your company’s phone number will appear when collection calls are placed.
We handle unpaid invoices for you
Our Accounts Receivable Manager can de-escalate situations and find solutions for prompt payment. We use a friendly, courteous tone when speaking with your clients. This isn’t about chasing your clients down — it’s not meant to be negative, aggressive, or blaming. It’s a gentle yet persistent reminder that encourages your clients to fulfill their obligation to you. Our primary goal is to help you collect invoices while maintaining your business relationships.
How to avoid unpaid invoices
Of course, the best case scenario is to avoid unpaid invoices in the first place.
Here are a few ways you can reduce unpaid invoices on your own, before you need to call in collections services:
- Use contracts that outline clear payment terms. Payments may depend on project timelines, milestones, or set due dates — it’s different for every business, but it’s important to make it clear. It may be worthwhile to consult an attorney to ensure that your contract language is solid.
- Offer terms that you know the client will be able to pay. Obviously, you need to have parameters in place that will work for your business. But delivering concierge service sometimes means being flexible. Is it possible for you to offer installments, timed payments, cash discounts, or other incentives to encourage timely payment?
- Enact systems to make payments as trouble-free as possible for clients (Here’s where Ten Key can help! With QuickBooks, we can set up recurring invoices and invoice reminders, as well as online credit card processing, to make it easy for clients to pay you.)
- Avoid habitual non-payers. If your client is paying late or not at all, Ten Key can analyze your balance sheet with you to see if you’re better off discontinuing the relationship (kindly and professionally, of course.)
Of course, as we small business owners know, you can do everything right and still need help collecting on invoices. In the end, you must protect your business. Whether you want to start with implementing better systems for invoice payment, or need to enlist our Accounts Receivable Management services right away, we’re here to help. Contact us today, and maintain a healthy cash flow for your company!