One problem that many businesses run into
is getting paid on time.
Well, you're in luck because today
I'm going to talk about
tips to do just that.
Hey, my name's Morgan Law
from finepoints.biz
And my goal is to help
bookkeepers and business
owners get organized
and take control of their finances.
And I also have a YouTube channel
totally dedicated to that
today and partnering with QuickBooks
on a video series
to help business
owners better run their business.
When you own a business, late invoices
can be more than just
a source of frustration.
In this video, I'm going to guide you
on how to follow up on late payments.
You're excited about this topic.
Give this video a thumbs up
and also subscribe
to QuickBooks' YouTube channel down below.
If you're more of a reader,
there's also going to be an article
linked in the description box.
A past due invoice is a payment
that the customer hasn't made
by the date that you agreed on,
and this can put your business at risk.
After all,
if your client doesn't pay you,
you can't pay your bills.
While, late payments can be stressful,
there are some steps
you can take to handle past due invoices.
Setting yourself up to get paid on time
begins even before the work does.
Make sure you communicate
with your client
to make sure that you're on the same page
with those payment terms.
Here are some things
that you can discuss.
Number one,
who you should send the invoice to.
This might be the client,
the accounting department, or maybe both.
Make sure that the invoice
gets in the right hands
so it's paid quickly.
Number two, ask your client
how they would like to pay.
Giving a variety of different payment
options may be really helpful
to your clients.
If they have a pass to invoice,
maybe ask them.
How would you like to pay?
And that could speed up
the payment process.
Clients are more likely to pay
if it's crystal clear on the invoice
what they're paying for.
So make sure you spell out
any hours worked,
really go into detail
about services provided,
as well as clear product descriptions.
As a bookkeeper,
I use the time tracking
feature in QuickBooks Online
to record every hour I work.
So I put in detailed descriptions
whether it is reconciling
the big accounts or keeping
track of someone's receipts,
and then all of that information
feeds from those notes into the client's
invoice that I make and QuickBooks Online.
So my clients really love
seeing that level
of detail in their invoice.
Make sure on your invoice
there is both payment
terms and a clear due date.
Otherwise, it's going to be your word
against your clients
If an invoice is late
and a due date also gives them
a really great target to aim for.
Be proactive and remind your clients
about their outstanding payments.
In QuickBooks there is a couple of quick reports
you can run to see who has open invoices.
So send your clients a reminder
and you might even get paid quicker,
which is great for everyone.
Having the conversation about past
new invoices can be really stressful,
it can be kind of awkward,
but having a great system
for following up on those past due
payments can help.
Accounting software
does make it easy
to follow up on late payments
because you can sort by client or date
and you can also set up
automatic reminders for late payments.
Are you still with me?
Good.
Here are a couple of tips
for writing a past due invoice letter.
Make sure to include
all of the following things.
Number one,
the invoice number.
Two, the invoice number to the date
that the invoice was issued.
Number three,
the invoice due date.
Number four, the transaction payment terms.
Five, the amount owed,
including any late fees.
Number six, Instructions for payment.
Number seven, your phone number
and contact information.
This will help ensure
that your customer has everything
they need to pay those overdue invoices.
And to make it even easier,
QuickBooks has automated messages
that you can send to your clients
for those polite reminders.
Check out the article
in the description box
for a bunch of email templates
that are going to help you
write those late payment reminders
they're already written for you,
which is a win win.
No business owner wants to deal
with unpaid invoices,
but it's most likely that at some point
in your business career,
you're going to have to deal
with late payments.
By proactively setting up
some really great systems
around accounts receivable,
you're going to be able to focus on
growing your business
and you'll avoid some of
those administrative headaches
about getting paid on time.
If you want to take manual
reminders off your plate,
QuickBooks Online and QuickBooks Payments
can simplify the payment process
with tools like automated
follow ups and online invoices.
If you found this content valuable,
make sure to give this video
a big thumbs up
and subscribe to QuickBooks'
YouTube channel.
Thank you so much for watching.
And we'll see you next time.