When invoicing customers, speed is essential to get paid on time. Many small businesses waste time trying to chase down late payments, and avoiding this problem can be challenging. There are a number of things small businesses can do to make sure they do not receive late payments, but the most important is getting invoices sent more quickly. The faster a customer receives an invoice, the sooner they’re likely to pay it while it’s still fresh in their mind.
In addition to speed, frequency and consistency will also ensure that payments are paid punctually. The most common duration for setting up recurring billing is monthly, which can go by quickly. To keep customers accountable, you need a solution that is fast and consistent. If you’re billing a costumer and you want to get paid before the next month’s invoice is generated, you need a solution that will automate payments as fast as possible.
Best Practices for Recurring Billing
- Generation of invoices must be automated
- Whether it is postal or online, invoices must be sent automatically
- Automated reminders ensure your invoice will be remembered
- Charging late fees help get you paid on time
Other Recurring Billing Features to Keep in Mind
- Delay send is a great option if you have occasional items that need to be added to invoices manually.
- Automatically add and display month of service. This may not sound critical, but if you bill the same amount each month, customers will remember making a payment and always assume it is for the current month.
- Display balance and past dues on invoices. When customers get busy, it’s easy for them to fall behind. Showing them what they owe if they haven’t paid will help keep them accountable for any past due invoices.
How to Get Invoices Paid FAST!
Not only should recurring billing be automated, but it should be fast! The key in any recurring billing environment is to do everything possible to get paid before the next invoice is generated.
- Provide the option and encourage customers to make payments online with a credit card or ACH.
- Provide the option and encourage customers to enroll in autopay.
- Enable variable auto billing. This allows you to automatically charge an account/card even when the billed amount varies month to month.
- Make sure you have automated retry for failed payments. It’s inevitable that sometimes payments will fail between expired cards and insufficient funds. When a payment fails for whatever reason, a process must be in place to automatically re-attempt an authorization.
- Enable automated messaging. When all else fails and your customer still hasn’t paid on time, they should be notified. Automated messages should be sent out to customers with specific instructions on where to go, such as a customer portal, and what to do.
Use all of the suggestions above when setting up your recurring billing process and you will be set up for success! Having a quick and consistent invoicing solution for your small business will open up more time, making you more efficient. If you’re looking for the right solution, ReliaBills is a billing software that provides all of the invoicing features listed above. Once you sign up with ReliaBills, you’ll never make a collections call again! To learn more about online invoicing, contact the experts at ReliaBills at 1.877.93BILLS (877.932.4557) or firstname.lastname@example.org.