Cash Flow is the lifeblood of your organisation. It guarantees that your business is operational and your company is able to pay your employees. But to ensure this, you need to get paid on time, too.
Chasing overdue payments can be tricky and time-consuming. When the invoicing process is delayed, the cash flow is also deferred. This is the reason you should invoice your clients immediately. Here are some implications of not being paid on time, according to Xero:
- If you wait too long, the business you’re transacting with may not have it in their budget anymore to pay you. Your business may have to wait an extended period of time to collect the funds owed to you.
- You may be dealing with a business that is close to bankruptcy (without you know knowing). By waiting too long, you run the risk of not collecting payment for your invoices at all.
- Your customers may have forgotten the details of the job and may inquire about the details of the work. This creates lots of back and forth, which produces even further delays.
- Business owners’ lives can get hectic from time to time. If you don’t invoice immediately, you may forget to invoice the customer altogether.
So if you’re still contemplating on how you can remind your customers on their overdue payments, Xero has the ultimate solution for that – Xero Invoice Reminders. Invoice Reminders lets you automatically send e-mail reminders to your customers and even control when and how they are sent out. Just tick the box to turn on reminders and use the pre-set default e-mails.
The e-mail messages are customisable so you can tweak them to suit your business and change the days overdue, as needed. You can even take a more proactive approach and send a reminder before an invoice is due. Moreover, if you don’t want to send reminders for small amounts, you can set a minimum owing limit.
Once your customer receives the reminder, they can view and pay the invoice online right away. You can also switch off reminders by going to Contacts or the particular invoice. Turn it off from within the invoice or turn reminders completely off for specific customers from your list.
By being paid sooner, you can improve your cash flow. With Xero Invoice Reminders, you can automate the unpleasant task of following-up on unpaid invoices and have one less thing to worry about.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522/0800 452 853, and download our e-book.