Being able to pay your bills on time consistently is essential. It’s an important skill to learn that every business owner should prioritize. Unfortunately, it’s also a tough thing to get used to. Not paying your bills on time can lead to late or delayed payments. What’s worse is that it can also leave you in debt, which will affect your credit score. As a result, having a bad credit rating can stop you from buying assets for your company later.
We want nothing but the best for our business. However, that also includes knowing your financial obligations and being able to set your accounts on time. That’s why in this article, we’re going to look at the different ways you can pay your bills, as well as the best bill paying strategy. That way, you can avoid the struggle of keeping up with your bills and be able to pay on time.
Best Ways to Pay Bills
Sure, parting ways with your hard-earned money can be tough. But paying bills is crucial to keeping your business running. Fortunately, there are numerous ways you can pay your bills. Here are some of the best options that you can take:
When you pay through ‘direct debit,’ you are paying via debit or credit card that you can link to where you are paying your bill. By doing so, you can guarantee that you’re paying on time and avoid late payments. When setting up a direct debit payment account, you should consider creating a separate bank account for bills payment. Another bank account will be for other transactions, while another will be for your personal expenses.
Pay Online or Via Phone Banking
If you’re used to baking online or by using your phone, you’ll be happy to know that you can also pay your bills through that method. It’s the quickest and easiest way to pay your bills without having to do too much. The best part is that you’re in full control of what you pay and when you want to pay it. The challenge for this is remembering to pay your bills whenever it comes around.
In some cases, you can send a check for the bill amount to the address provided by the business. However, you should be aware that it can potentially take five days to a full week for this method to process the check and them receiving the money from your account. So, if you’re at the tail end of your billing period, it’s best to use other methods instead. Only consider this option if you plan to pay on time or earlier.
A less popular yet still viable option for paying your bills on time is via cash or card to your local Post Office. Yes, it’s quite a primitive method for paying bills. Plus, there are even instances where you will need to pay a fee for using this service. However, some payments do require you to use Post Office. Only consider this option if it’s mandatory. If not, there’s really no reason for you to consider Post Office bill payment at all.
If you’re looking to pay up your gas or electricity, you can opt for payment meters. It’s done using prepaid by topping up a credit card or key, which then goes into your electricity or gas meter. This method is one of the most expensive ways to pay your bills. The worst part is that when you run out of credit, you’re also out of energy. That means you need to keep monitoring your credits on top of monitoring your billing dates.
How to Pay Bills on Time
Managing your bills and paying them on time can be difficult. But it can be remedied. The last thing you would want to happen is getting all of your late payments piled up. We wouldn’t want that to happen to you. That’s why we compiled a few effective tips from the MoneyAdviceService to make sure you stay on top of your finances and pay your bills one time.
Start managing your bills by compiling them in a single folder. That way, you will know where to find your bills when you need to pay for them. If most of your bills are digital, put them inside a file on your computer. That way, you will know where to find them when you’re ready to pay. While you’re at it, make sure you keep track of when your bills need to be paid. That way, you won’t have to deal with debt or delayed payment.
Choose the Best Payment Method for You
We just discussed the best payment methods for paying bills. Now, what you need to do is determine which among those options work best. Once you do, stick to that method every time you need to pay bills. In my experience, direct debit is usually the most convenient way to pay my bills. So, it might work for you. If not, you can always try the other methods mentioned.
Check and Monitor Your Bills Regularly
What this means is that you should always keep a close eye on all of your bills. That way, you won’t miss any important payments. You will also spot any mistakes and determine if your bills have increased or reduced. Choose a specific day each month for paying one of your bills or all of them. Use the calendar app on your phone to make sure you won’t forget important payment dates. You can also check payments on your bank statements as well.
Don’t Let Your Bills Go Out of Control
Simply put, you shouldn’t let your bills get on top of you. If you’re having a hard time paying your bills, don’t ignore the problem and expect it to go away. It will only get worse if you do. Instead, do some more research and find ways to deal with billing problems like arrears or debt.
Make Sure You’re Not Paying More
Make sure you’re not wasting money by paying too much. You can read various guides on how to save money on your business bills. That way, you can cut hundreds to thousands of dollars off your monthly bills.
Which Bill Should You Pay First?
When paying bills, priority is always an essential thing. You need to determine which bill needs to be settled right away and which can be paid on a later date. You can get on top of your bills through proper prioritization and make the necessary payments on time.
For instance, I usually pay off my electricity first since it’s the first bill that I receive every month, and it’s also the most important one. My internet connection is second since having an online connection is crucial to any business.
For the least priority payments, I’d go for leisure like my Netflix or Spotify subscription. Basically, if you’re running a business, then paying off the bills directly affecting your operations is of topmost priority. That way, your business won’t be affected and will continue to make you money today and for the foreseeable future.
Prioritization will depend on each person. Some prioritize one particular bill while others prefer settling another. Make sure that as early as right now, you should determine which bills you should prioritize more. You can do so by listing all of your bills and proceed to assessing them one by one.
So, as you can see, having a good strategy for paying your bills is crucial. However, not everyone has it. Some don’t even know how important paying bills are. If you want to improve your business and take it to new heights, consider doing the little things that make the most impact, like paying your bills on time.
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