Most small business owners I know dread having to do debt collection with their clients. While cash flow is a major concern, the thought of messaging, sending a kind email reminder or picking up the phone to ask why a invoice has not been paid make ironing or going to the dentist more appealing.
Why is that?
When you are proud of your product or services, why do you find it so difficult to chase clients who fail to pay on time?
Can I just combine the old invoices into a new one?
This might seem like a good idea at the time, but will it encourage your client/s to pay any faster?
Some reasons why this is not the right choice to make:
How can you get paid faster?
Incorporate Automatic processes
If you use Xero, you can select automatic reminders, paste your letter of reminder templates and more.
MYOB and Quickbooks (Intuit) Solutions
Both Myob and Quickbooks allow for merchant payment solutions with their online software programs
Quickbooks can accept credit card and bank transfer payments linked via a button on your invoices you email out. See more Credit Card Payment Solutions
What if all of the above fails to work?
You have three choices, either hire a debt collector, seek mediation or Start legal proceedings.
Remember in Queensland all debt collectors are required to be licensed. Ask your friends in business who they use, as word of mouth recommendations are often more effective in deciding on a debt collection service than going through the phone book randomly.
If you are uncomfortable with hiring a debt collector, you can seek mediation. This can save you time and settle the matter in a way to suits both yourself and the customer who has not paid you. If a solution is not reached, the magistrate will make the final decision for you both. See Queensland Government Abbreviated mediation for more details
You can file a small claims case at your local court house for all amounts under $25,000 or less. See QCAT for more details.
If you like our suggestions and would like to know more about My Office Books, please contact Amanda via our business page on facebook https://www.facebook.com/MyOfficeBooks/ or ask a question by emailing us at email@example.com.
Amanda Hoffmann is a registered Tax Practitioner / BAS Agent No.18613005, Associate of Finance, Xero, Myob & Quickbooks Proadvisor / Trainer and a Consultant for the Australian Taxation Office.
She says she is more than just a bookkeeper with experience in real estate investing, social media, podcasting, blogging and recently recording monthly youtube episodes
Amanda loves to teach smart, easy online cloud solutions and fix messy bookkeeping. Follow her on social media and say “Hi”
BAS Agent and Bookkeeping