![]() In reality though, you just need to write one reminder template and modify it slightly based on the reminder date. This part might sound like a lot of work. Write up a series of email templates for each reminder date. But, multiple reminders may help you avoid uncomfortable situations where payment is due before products or services are delivered. Yes, the onus is on the customer to pay the invoice. If you offer products or services that require upfront payment, you may want to send more than one reminder before the due date. Initial send of invoice (date variable). ![]() What’s the frequency of your invoice reminders? Here’s a sample schedule: Let’s say it starts with the date you send the invoice and ends 14 days after the due date. So you have your invoice follow-up timeline. This timeframe can change if you see a need to shorten (or lengthen) it after trying it out for a few months. Decide on the timeframe that’s right for your business now, but don’t feel tied to it. ![]() You may choose to manage everything up to the invoice due date and then trigger a staff member to start calling, or you may want to send a few more reminders and start calling 14 days after the due date. Think about how much of the invoicing follow-up process you’d like to manage via email and when you’re ready for phone calls. Related: Measuring collections: use these 2 metrics for a quick snapshot Consider the timeline for invoice follow-ups. Both measurements will show you where you might need help in closing the invoice-to-payment gap. And if you have access to any bulk invoicing data, calculate key collections metrics like Days Sales Outstanding (DSO) and your Collections Effectiveness Index (CEI). Whatever the case, make sure you understand exactly what’s happening today before making any decisions about what to change. What types of business processes are taking place relative to invoicing? Are you using an online invoicing platform, sending out invoices once, and following up only after invoices are 30 days late? Maybe you’re still mailing out paper invoices with at least one reminder in place before you start calling customers. To start, assess your current invoicing landscape. So what should businesses do to stay on top of payments? Create an invoice follow-up strategy that will reduce late payments and minimize manual effort. Paper and email invoices can get lost, even with the best of intentions. That one invoice notification is not enough. ![]() As in the example above, some businesses expect to send out an invoice once, receive payment, and forget about it. There are plenty of other reasons people and businesses don’t pay invoices, and one of them is the lack of proper follow-up. A recent study cited on CFO magazine reported that 49% of financial professionals didn’t pay corporate invoices due to lack of information, out of a total of 10,000 invoices that were at least 30 days overdue. Unfortunately, they don’t always pay on time - or at all. In an ideal world, yes, customers would all make payments in a timely manner. You send out an invoice with all the appropriate details, and voila, your customer sends back payment in time for the due date. Collecting payments from customers seems like a pretty straightforward process. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |