The Accounts Receivable Playbook: How to Get Paid Faster
Getting the sale is exciting. But the truth is, the deal isn't really done until the money is in your bank account. The time between sending an invoice and getting paid is called your ACCOUNTS RECEIVABLE, and managing it well is a game-changer for your cash flow. It's not about being pushy or aggressive; it's about being professional, organized, and proactive. Here is your playbook for getting paid faster and keeping your business's finances flowing smoothly.
1. Set Expectations from Day One 🗓️
Getting paid on time starts before you even send the invoice. When you're onboarding a new client or making a sale, be crystal clear about your payment terms. This includes:
The total cost and what it covers.
The due date for payment.
What forms of payment you accept.
Any late fees or penalties for overdue invoices.
Put this in writing, whether it's in a contract, an email, or on a simple agreement. This prevents confusion and gives you a clear point of reference if issues arise.
2. Invoice Like a Pro (and Do It Immediately!) ✉️
A professional invoice is an invitation to pay you. A clean, clear, and detailed invoice makes it easy for your client to understand what they're paying for.
Be Prompt: Send the invoice the moment the work is complete or the product is shipped. Don't wait until the end of the month.
Include All Details: Make sure your invoice has everything: your business name and contact info, the invoice number, the due date, an itemized list of services or products, and the total amount due.
Use a Template: Use a professional template from your accounting software or a design tool. A clean, branded invoice builds trust and looks official.
3. Make It Effortlessly Easy to Pay ✅
The fewer obstacles between your client and a completed payment, the better.
Offer Multiple Options: Don't just rely on checks. Offer payment via credit card, ACH bank transfer, or a digital wallet.
Use Online Payments: Include a direct payment link on your invoice. Most accounting software and payment processors can do this for you, so your client can pay with a single click.
4. Have a Smart Follow-Up System 📞
This is where a lot of business owners fall short. You don't want to be a nag, but you do need a system.
The Gentle Reminder (7 Days Before Due): A simple, automated email reminder that says, "Just a heads up, your invoice will be due in one week!"
The Day-of Check-In (On the Due Date): A quick, polite email letting them know the invoice is due today.
The Direct Follow-Up (7 Days Overdue): A more direct email or phone call asking when you can expect payment.
5. Consider the Carrot and the Stick 🥕
For those times you need a little more incentive, you can add a small early payment discount (the "carrot") or a late fee (the "stick").
Early Payment Discount: Offer a 1-2% discount if the invoice is paid within 10 days.
Late Fee: Clearly state a late fee (e.g., 1.5% per month) on your invoice for any payments that are more than 30 days late.
By implementing these strategies, you're not just hoping to get paid; you're taking proactive steps to ensure your cash flow stays strong and your business keeps moving forward.
