A new year brings you a new chance to get your business accounting together. This year, make sure you are taking steps to improve your accounting practices. Improving your accounting practices can help you overall business succeed.
#1 Follow Up On Invoices
Keep in mind that when you send out an invoice, your job is not done; it has really just started. Once you send out an invoice, you need to log that invoice information into your system. You need to mark down when an invoice is paid.
Your system should be set up so that once a week, you go back through and review all overdue invoices based on your payment policy. For example, every Wednesday you reach out to all accounts who have not paid or made a payment arrangement with your business and their invoice is over two weeks old.
You don't have to keep track of all of this by hand; you can use accounting software that will allow you to see who is behind on paying their invoice. You can even use accounting software to let you know when invoices are overdue. Alternatively, a company that offers small business bookkeeping services on a contractual basis may be able to handle this for you.
#2 Set Up Online Payments
If you want to get all of your invoices paid on time, you need to make sure that you are making it easy for people to pay their invoices. If you are relying on paper checks for invoice payments, you are operating in a style of business that has faded a while ago.
You need to make it easy for your clients to pay their invoices and bills. Set up an online payment system for them. You can use an accounting based software that accepts online payments, or you can set up an account with one of the popular online sites that allow you to accept payments. Accepting online payments may make it easier for you collect on your invoices and leave you with less late invoices.
#3 Get Help with Late Payments
For payments that are seriously late, like a few months overdue, you may want to get outside help with collecting on the debt. There are agencies that will help you collect on debts in a professional manner and work with clients who are overdue.
This year, make sure that invoices are paid in a timely manner by using an accounting system that allows you to collect online payments, and have a back-up system in place for dealing with seriously overdue clients.Share