Get your invoices paid on time

Get your invoices paid on time

Allowing late invoice payments can set a harmful precedent for your business.

Keep your cash-flow steady and avoid wasting time chasing up invoices by following these tips.

Have a written agreement of your payment terms
Clear communication is key to ensuring your terms of payment are met. You should explain your desired payment terms and allow the client to negotiate. Once you have reached an agreement, put it in writing. Not only do you have evidence, but you have decreased the likelihood of miscommunication.

Consider upfront payments
You can demand your payment before the work gets done. If the work occurs on an ongoing basis, your written agreement can state you will start work only if the payment is made at the beginning of each month. Holding the work will be an effective way of ensuring you are paid on time.

Make it easy for the client
You should give your client the benefit of the doubt and assume that they want to pay on time. If your invoicing is inconsistent or inaccessible, you are setting yourself up to fail. Invoice on time and switch to an electronic invoicing system to streamline your process.


If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.

Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.

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