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Late payments hurting your cash flow? Discover these tips to improve your accounts receivable collections, from prompt invoicing and clear due dates to automation tools and flexible payment options. Modernize your AR process, streamline follow-ups, and get paid faster by following these tips 👇
Invoice Promptly
Send invoices for services as soon as possible - ideally while the work is fresh in your client’s mind.
The longer you wait, the less urgency your client feels to pay, and the harder it may become to collect.
Use a cloud accounting software
Cloud platforms make it easy to update your invoicing “branding themes” and payment options on the fly.
For example, you can start by offering payment only via direct bank transfer. If the client doesn’t pay, you can then adjust the invoice to allow credit card payments. This flexibility can make a big difference in speeding up collections.
Set clear due dates
Instead of using vague terms like “Net 30,” always provide a specific due date.
This removes any confusion and helps clients plan their payments more effectively.
Make regular customer statements
Don’t assume invoices always make it through.
By sending customer statements on a set schedule, you provide an extra touchpoint that helps clients catch missed invoices and stay on track.
Make payment easy
The easier it is to pay you, the faster you’ll get paid.
Clearly list e-transfer or direct banking details on invoices.
For recurring clients, consider tools like Plooto AR or Rotessa that allow Pre-Authorized Debit (PAD).
Provide backup payment options
If e-transfer or direct banking fails, allow clients to pay via credit card (a bit more expensive in fees but encourages payments).
Update your branding themes to reflect this. Flexibility prevents payment delays.
Pick up the phone
Sometimes, the issue is as simple as an outdated email address.
A quick phone call can resolve the problem faster than weeks of resending invoices.
Leverage AR automation tools
If you’re managing a large volume of receivables, tools like Chaser or Harvest can automate reminders and streamline follow-ups.
We help businesses modernize their AR processes so they can get paid faster and reduce cash flow headaches. If you're struggling with collections, let's talk.
