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Business Advisory

Boost Your Business: Expert Tips to Streamline Payments

Posted by: Glenn Sharp on

In today’s competitive business landscape, ensuring timely payment is paramount to sustained success. Any business model’s core lies the pivotal process of generating revenue through sales. However, the viability of this revenue stream hinges on the prompt settlement of invoices by customers.

Efficiency is key when it comes to cashflow management. The smoother the payment process, the quicker funds flow into your business, bolstering financial stability, covering operational expenses, and fuelling future growth initiatives.

So, how can you streamline payments and safeguard against overdue invoices?

Establish Clear Payment Terms:

Setting out unambiguous payment terms serves as the foundation for expeditious payments. Clearly stipulate the timeline for payment, whether it’s immediate upon invoice receipt or within a specified period (e.g., 30, 60, 90, or 120 days). Additionally, provisions for late payment penalties should be included to incentivise timely settlement.

streamline payments concept

Expedite Invoicing Procedures:

In a business-to-consumer (B2C) environment, transactions often culminate in immediate payment. Conversely, in the business-to-business (B2B) realm, invoicing is requisite for payment processing. Minimise delays by promptly issuing invoices upon completion of services or delivery of goods. Segmenting projects into multiple invoices, if applicable, facilitates progressive payments and mitigates prolonged receivables.

Streamline Payments Administration:

Optimise your payment workflow by ensuring meticulous organisation. Send invoices to all relevant stakeholders, including the primary client contact, approver, and finance team. Incorporate relevant purchase order (PO) numbers and provide detailed descriptions of goods or services rendered. A structured approach expedites payment processing and minimises administrative hiccups.

Embrace Payment Technology:

Embrace the digital revolution by transitioning from traditional hard-copy invoices to electronic equivalents. Electronic invoices, generated through accounting software or project management platforms, expedite distribution and facilitate seamless record-keeping. Leverage the versatility of e-invoicing platforms to offer diverse payment options, from direct bank transfers to digital payment gateways like PayPal or GoCardless. Providing multiple avenues for payment enhances convenience and accelerates transaction turnaround times. We share the importance of your accounts receivable processes here.

Unlock the potential for swifter payments and enhanced cashflow by adopting these best practices. For personalised guidance on optimising your payment processes and harnessing the latest payment technologies, reach out to us today. We’re here to empower your business’s financial agility and prosperity.

Our next complimentary breakfast seminar, Getting Paid, is on Wednesday, 5 June at 8:00am. We will share practical and proven strategies for getting paid as fast as possible. Click here to find out more.

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