Talking Cents

Small business accountant in Melbourne - how to make sure your customers pay on time?

It is always unpleasant for small business to have customers who pay late. How can you, as a small business owner, make sure your customers pay on time? Read on for some practical tips by us, the small business accountant in Melbourne.

Is your invoice easy to read and comprehend? The more confusing your invoice is, the more you are likely to receive pay payments or even the worst-case scenario – no payment. Make sure you state the amount due, the date payment is due, the purpose of the payment and also your business contact details.

To encourage customers to pay early, use incentives! Offering discounts for early payment that will not harm too much on your profit margin.

Following up overdue payment is your responsibility and failing to do so tells your customers it is perfectly okay to pay you late. Don’t send the wrong message across to them.

Before you extend a credit to a new customer, review their credit history. If the customer doesn’t have a good record, you might want to partial payment upfront before products are delivered.

If you are working with a customer that is constantly paying late or worse, left you with unpaid debt, you might want to consider to cut the tie or change your policy such as cash on delivery.

If you are looking for someone to help, contact mas soon! Based in Sydney and Melbourne, we are a group of professional accountants who are passionate in taking off the accounting burden off our clients.