To survive in any business, collecting payment timely for the sales and service is the key for any business. Well, 2022 is not so far, and technical advancements quickly replace specific business processes, like companies are now adapting online billing software, ERP systems, intelligent Payroll systems, etc. 

Also, to create a strong brand impression, small businesses and even freelancers nowadays print customized bills with online software, which significantly impacts their clients and customers. At the same time, other industries such as tech, food and services are using online payment processing software, which enables their client to pay upfront as and when they are billed. 

However, you won’t believe it, but many businesses still neglect the invoicing part in the industry. The most frequent errors that every business makes are in the portion of billing. Companies, on the other hand, utilize online accounting software to fix business accounting issues.

The stress of not being paid is psychologically taxing and has a financial impact on your company. Due to such issues, you may have to put a lot of effort to fix business accounting issues instead of focusing on core business activities.

Key strategies to collect payment on time

If you are a business owner or freelancer and can connect well with the situation as mentioned above of not getting paid timely, this is the read for you! To prevent missed invoices or overdue payments into your account, we’ll offer several methods and tricks for collecting charges on time for your company and how online billing software can help in the same.

1. The strategy of a customized schedule of payment for your client. Try it! 

Being open and honest about your company is one way to keep a strong connection with your customer. You may create a policy using online billing software to ensure that you get compensated, but you should also be willing to adapt to your client’s requirements if required.

Open communication with your customer regarding their chosen payment plan or instalment may help you avoid future unpaid bills through the use of online payment processing software.

Clients vary, and some may find it more convenient to pay for your goods or services in instalments. Suppose you can provide a collaborative alternative to your customer by providing them with a customized payment plan using online payment processing software. In that case, it may become one method to build a solid connection with your client that will always result in timely payments!

Here is the smart hack for the same

If you opt to give your customers a customized payment plan, don’t forget to enable the alert for each payment plan to prevent overdue bills on your part.

Moon Invoice’s online accounting software has a recurring invoice function that enables you to customize an invoicing schedule for each customer.

You may build your customer’s profile and set up the payment plan depending on the project’s start date, pay periodicity, and the items mentioned in the invoice for the client.

Once everything is in place, you can begin automating the recurring invoice to be delivered straight to the customer in no time!

2. The strategy of automating the entire billing process

Invoicing errors are a frequent occurrence for most individuals or small company owners at the start of their careers, from submitting the invoice late, which resulted in a late payment from the customer, to details that need numerous changes before being paid.

Automating your invoicing system using online billing software or online payment processing software will reduce human error and allow you to collect money on schedule. It significantly reduces your chances of making needless invoicing mistakes. Furthermore, most online payment processing software will enable you to recover your transaction data.

Here is the smart hack for the same

There are many advantages to automating your billing system using online accounting software. It allows you to personalize your invoice to appear professional, depending on your branding style and colours. It typically comes with other features that may help you simplify your customer billing encounter when you use online billing software.

Moon Invoice saves you time and money to fix business accounting issues by simplifying invoicing and cost management. You may customize an invoice by selecting an invoice template and adding your logo before sending it to your customers. Furthermore, you may set payment conditions for all future invoices automatically in one go.

3. The strategy of having a clear and transparent payment policy

Negotiating an advance payment with a prospective customer may be difficult, mainly if you are a new small company owner. Having an upfront fee strategy, on the other hand, benefits both the company and the customer.

Because you will not have to deal with unpaid bills in the future as a company owner, you will be less concerned about finishing the job. Paying online payment processing software in advance may also assist the customer in arranging their money in other areas.

One of the best ways to demonstrate to a customer that you operate a genuine business is to establish a contract that contains your company’s payment policy using online billing software. Establishing a formal agreement is essential for establishing client expectations and detailing your responsibilities to guarantee that you are compensated for your job.

Here is the smart hack for the same

A solid contract does not have to be difficult to understand. It should be sufficient to facilitate communication between your customer and you as a company owner, but not excessive. Knowing that they have a contract in hand will assist both parties in getting on the very same book about their duties and privileges. It will safeguard your company while also protecting your customer.

4. The strategy of retainer based model

If you are presently charging your clients hourly using online billing software, it may be time to reconsider your company strategy and explore a retainer-based one. The latter is beneficial if you are familiar with the client’s project process and can follow it step by step.

A retainer-based business model will allow you to concentrate your efforts on assisting your clients in achieving their objectives via the deliverables you provide them. As a company owner, knowing that you have this model at your disposal will make forecasting your projected revenue easier from time to time.

From the customer’s perspective, selecting retainer suppliers or service providers may also assist them in adjusting their budget as needed.

Here is the smart hack for the same

Being paid continually for your retainer-based company model may help you automate virtually everything using online accounting software. You may automate everything from generating leads to your invoicing system so that you can concentrate on high-quality work for your company.

To service your retainer clients, use systems like Moon Invoice to automate the creation of recurring invoices using online accounting software. Sending an invoice manually may be time-consuming; nevertheless, online billing software will be a game-changer in collecting money on time.

You can also set up an automated email reminder via Moon Invoice’s online accounting software if your customer has a late invoice.

Does Your Invoicing Software Helps You Paid Faster?

5. The strategy of offering a discount on making early payments

If you provide a customized payment plan for each customer, you may also give them a deal if they agree to make upfront payments through online payment processing software. Alternatively, providing a pre-payment discount to customers as an incentive may be considered to prevent late fees from their end.

Clients may save money by changing the timeframe to pay for your deliverable if you give them a discount for every payment made before the due date. As a company owner, it ensures that you will get money in advance, eliminating the need to send a series of follow-up emails to customers.

Here is the smart hack for the same

Giving a discount for early payment is only advised if you use online billing software. Otherwise, manually tracking the customers who are qualified for discounts would be time-consuming.

You may generate customized invoices using software like Moon Invoice, even if you utilize different payment conditions for each customer.

6. The strategy of keeping track of and follow up on past-due bills

When it comes to business, company owners, like ourselves, are often hesitant to ask for their own money. But the year is 2021! And such circumstances are becoming rarer. Businesses have improved in professionalism and transparency due to the particular invoicing and payment conditions using online accounting software. 

Now that you know which invoicing solution to employ for automation, it’s time to simplify your methods for collecting payments on time from each customer.

How long do you have to wait before sending an email reminder for the unpaid invoices? Which kind of action will you take if a customer refuses to finish the payment?

Start paying attention to market trends! Invoice clients and only follow up if they fail to fulfil the timeframes specified on the invoice.

Online accounting software for businesses enables you to send electronic bill notifications to consumers over the internet. It relieves the accounting department of an additional burden while also bringing a more pleasant tone to the correspondence process.

Here is the smart hack for the same

Using online payment processing software or online billing software such as Moon Invoice to track past-due bills may be one of the most straightforward methods to ensure that you get payments on time. However, if your customer has no intention of paying for your deliveries, this will not guarantee that you will get money. And it is for this reason; you must follow a rigorous procedure when it comes to any overdue bills.

When it comes to payment choices, you may be flexible, but when it comes to dealing with late payments, you must always be challenging. Make any overdue payments subject to a penalty in the form of a missed payments charge; if required, seek legal counsel or the services of a collection agency.

7. The strategy of building trust with your customer

When it comes to running a company, having good terms with customers is key. Keeping a positive connection with your customer will not only increase your chances of receiving repeat business from them, but it will also be very beneficial in the event of late payments.

As a freelancer or company owner, maintaining good conversations with your clients is essential to learn how you may better serve your clients in the future.

When you have a strong working connection with your customer, you may discuss anything that would help both of you accomplish your objectives, including the most effective method to collect payments on schedule.

Here is the smart hack for the same

Maintaining frequent communication with your customer is essential for maintaining the quality of your work and determining how to enhance it in the future using online billing software. It may also be your opportunity to provide feedback to your customers.

Maintaining a positive connection with your customer is essential, but you must also establish appropriate limits with them. Before you begin working together, choose a suitable platform to check in with each other. Share your specific work hours so that they know when to anticipate a response from you.

Also Read: Top 10 Strategies To Collect Payments On Time

In conclusion

It may amaze you, but allowing your consumers to pay online using online payment processing software will enable you to recover money three times faster.

Online accounting software integrates with a variety of online payment gateways, enabling you to receive cash from anywhere in the globe at any time. It is simple, fast, and reliable.

The seven major invoicing strategies listed above may assist you in fixing business accounting issues and avoiding mistakes at the heart of your entire company operations, namely online invoicing software.

In every company, whether small or big, timely cash flow is critical. As a result, as a company owner of whatever size, do not underestimate its power. Don’t be afraid to invest in online invoicing software. Each of the sections listed above is intended to assist you in accomplishing your business’s objectives.

If you haven’t searched for Online billing software for businesses, give us a call at +1-805-491-9393 to arrange a demo or send us an email at support@mooninvoice.com with your business questions.

FAQ’s

Moon Invoice is one of the most talked-about payment processing software as it allows business owners 24+ verified business payment gateways for accepting client payments.
The payment button can be easily integrated with an invoice using the Moon Invoice software. For more information, you need to connect to our support team.