Whether you’re just starting out or a Xero veteran, you will benefit from using these top tips for getting paid on time. Everyone selling or providing services will at one time or another experienced a late payment. Chasing up your customers for payment can be time consuming and frustrating, but with Xero there are several steps you can take to reduce your debtor days, which we’ve highlighted below.
Make payment straight forward
Setting up payment couldn’t be easier. Using the payment service option means your customers can access their invoice and only have to click pay now to make the payment there and then. Not all your customers will pay the same way, Xero gives you the option to set up more than one payment method. A good example would be if you use Stripe, then your customers can pay by using either credit or debit card. With Xero you can even set up automatic payments for your regular customers; using the GoCardless option you can also except direct debit payments.
*The payment method is worth exploring, but please remember to check the fees for the different service options before setting up.
Set up reminders
The easiest way to remind your customers they have an invoice outstanding for payment, is to set up invoice reminders. Setting up invoice reminders reduces the time and frustration that comes with chasing up your customers. These reminders automatically send emails to make your customer aware of an upcoming invoice or if they’ve missed an invoice payment. These reminders are also customisable so you can decide when they’re sent and who they’re going to.
One other way you could remind your customers is by sending them customer statements. This option sends the customer their outstanding transactions, previous invoices and/or payments from you.
Keep up to date with what you’re owed
One way of keeping track of your owed invoiced is by using the invoices owed to you panel on your dashboard. This shows you a quick insight into who still owes you money and how long it’s been since they received their invoices.
Setting up customer credit limits is also a good way of making sure your customers aren’t getting too many invoices which are consistently not being paid. You can set this up by pressing set a credit limit before you send an invoice, this gives you control of how many unpaid invoices you can have at any one time.
Keep focused on debt
Xero have come up with a clever way of making sure you follow up on your debt with customers. By using the aged receivables summary report you’ll able to see up to date outstanding transactions for each of your customers. This report can show you a range of customisable information such as customer emails and mobile numbers; you can then generate a list from this information by pressing update, this will allow you to see which customers have outstanding payments.
Another efficient and functional way to keep on top of your credit control is connecting an app such as Satagoto Xero. Satago is an all-in-one cash management tool that gives you access to risk insights, credit control and funding options, which helps you manage all stages of your debtor cycle. This helps towards keeping your cashflow moving and business running smoothly.
Satago can also run credit checks on your customers. Having insight into your customers financial history can help you decide if it’s a good idea to move forward with transactions.
If you would like further information about Satago or how to sign up for a 14-day free trial, please contact us on the details below
(E) email@example.com or (T) 01908 219100 (W) advaloremgroup.uk