How to avoid late payments
Not getting paid on time can have a big impact on businesses, disrupting cash flow and affecting your liquidity. From keeping track of payments owed to you to making sure you pay suppliers on time, here's some quick tips to avoid the hassle of late payments.
1. Set your payment terms
Setting out the terms of your payment are a must when selling goods or a service to your customer. Including these terms on your invoice is a simple way to make it clear when you expect to be paid. With Bokio, you can create invoices for free, and email them to your customer directly from the app, or download a PDF copy. The invoice generator is comprehensive, and of course includes the due date for your payment.
2. Charge interest
Charging interest on overdue payments is a great way to encourage your customers to pay on time. When creating an invoice with Bokio, there’s an option to state how much interest you will charge if the payment is late
3. Keep track of your finances
Keeping track of your invoices used to be a hassle - but not with Bokio. You’ll receive reminders in the To do section of the Bokio app when the invoice is due, and can record when the invoice has been paid and if it has been overpaid. You won't have to worry about spreadsheets anymore as you will now have your accounting, invoices and reports in the same place.
Having a close eye on your cash flow can give you a better overview of how your company is performing, any customers with a habit of late payments, and if there are space funds you could use to help grow your business. Using reports to look at a breakdown of your finances and where funds are allocated is a great way to do this.
4. Send a reminder
If the payment you’re expecting is late, don’t worry. You can send a polite reminder email through Bokio to encourage your customer to send the payment.
5. Don’t be a culprit!
Maintaining a good relationship with your suppliers is important, so make sure you are paying them on time. The To do section will let you know if you are due to pay a supplier, as long as you have uploaded the supplier invoice to Bokio.
Find out more about how creating invoices in Bokio can help streamline your accounting process, leaving you with more time to focus on running your business.