How to speed up payments from customers by ditching the paper
Delays in payments can be very frustrating, especially in sectors like the construction industry. Whether you’re a small trader such as a plumber or electrician or a larger building company taking on contract work, prompt payment is good for cash flow and allows you to manage your business more efficiently.
Many companies and traders in the construction industry still rely on paper billing. While this is perfectly acceptable, it can lead to issues such as delays in payment.
Switching to online digital accounting and invoicing and using readily available and cheap devices such as card readers can make a huge difference to the speed of payments and help keep that all-important cash flow in good order.
Using Invoicing Software
Accounting software has come on in leaps and bounds over the last ten years and many small and medium-sized businesses use it today. Accounting apps allow you, for instance, to quickly produce invoices and send them to customers instantaneously via email. You can add in different methods of payment and also easily follow up if invoices have been paid.
Accounting software also allows you to keep track of all your business finances and manage your cash flow effectively.
You can use it to manage payroll for other contractors and people that you employ.
If you add VAT to your invoices, going digital not only allows you to manage this more effectively but also makes you MTD compliant.
You can do this all from a device such as a smartphone, wherever you happen to be at the time.
One of the other big benefits of invoicing and accounting software is that you spend much less time going through paperwork – it’s managed in one place and keeps an accurate record of all your transactions.
Making it easier for customers to pay is also important if you want speedy payments. You can add a variety of different options from bank transfers to debit or credit card payments that can be accessed securely through a simple online portal.
What’s more, payments are usually instantaneous nowadays, clearing into your bank account pretty quickly.
The Benefits of Using a Card Reader
Another option to encourage speedy payments is to invest in a card reader for your business. This is essentially a portable point of sale (POS) device which you use to take card payments out on the road. All the customer has to do is insert their card, put in their pin and you get paid.
These are relatively cheap to buy (some are even free with certain merchants) and most organisations charge a low flat rate between 1.6 and 1.75% for each transaction that they process through the reader.
Is It Safe to Use This Kind of Software?
Handling your invoicing and other accounting processes through the digital world and cloud-based services can seem a little daunting if you’ve been used to paper invoicing during your career. The truth is that these services are highly secure and depend on multiple layers of encryption so that they keep financial details and transactions safe.
Our Top Tips for Faster Payments
Going digital should speed up payments from customers, whether you’re a sole trader or a larger company. There are, however, other simple things you can do:
Make sure you issue invoices as soon as possible.
Agree with the customer on the terms of payment before you start a particular project.
Chase up late payments promptly.
Set Up Digital Billing Today
We can help you set up your accounting system in next to no time, making it easy to get invoices out on time and take payments at any time.
If you want to transform your billing process and make it much faster, contact our team today.
