Make sure invoices are sent to the right person It’s where good software like AccountsPortal is invaluable – it deals with every aspect of invoicing very well indeed.”Īlso make sure you include all the relevant information in your invoice so that the client doesn’t have to search for details such as bank account numbers or payment amounts. Ask the client why they’ve not paid and deal with all potential issues without delay. If it’s not paid, chase it immediately as well. This means the transaction is still fresh in the client’s mind and prompt payment is more likely.Īs Jones adds: “Don’t leave issuing invoices for several days, send them immediately. Once you have provided your goods or services, make sure you send an invoice within a reasonable time frame. You can also charge reasonable debt recovery costs, so make it clear in your terms and conditions if this is something you plan to do. UK law also allows you to charge interest of 8% plus the Bank of England base rate on late payments for business-to-business transactions. When it comes to setting payment terms, the standard approach tends to require invoices to be settled within 30 days, but it’s your choice. Peter Richardson, founder at AIM GB, goes a step further: “I regularly remind clients to check the company they are dealing with, before they agree a contract run credit checks, search Companies House for directors and check if the directors have had other companies that have been dissolved.” ![]() Nicola Jones from My Accountant Online says: “I often tell clients one of the best ways to get paid quickly is to always make sure you agree your terms with a client or customer first and then to issue an invoice without delay.” Once you’ve agreed to provide a product or service, it’s important to also establish your payment terms. Indeed, with many businesses facing financial uncertainty, having a robust method for invoicing and for managing unpaid invoices is crucial, and this is a process that should begin as soon as you start working with a client. It is the everyday bookkeeping duties of raising and sending sales invoices to customers, posting the purchase invoices, accounting for cash expenses, posting bank payments, recording customer and supplier payments, and bank reconciliations that will make the difference.” “The key to this is good bookkeeping aided by good bookkeeping software. This has been a particular issue for many businesses in the past few months as companies attempt to manage the challenges associated with coronavirus.Īs Nicola Holden, director at accountancy firm Holden Associates, explains: “Monitoring the cash flow within a business is always important and that is especially true in the current climate. However, there will be times when, for various reasons, invoices go unpaid for longer periods than expected. ![]() You must follow the rules on storing customer data to protect their financial information.Keeping on top of cash flow and ensuring invoices are paid in a timely manner is essential if a business is going to survive and thrive. Registered for an anti-money laundering scheme. If customers pay you in large amounts of cash, your business may need to be If you want to set up a business that takes a sum of money from a customer every time they use a service, for example, online trading, you may need to be authorised by the Financial Conduct Authority. Where you can’t accept a PIN, a clear signature will help but there is no guarantee against a chargeback.įor card-not-present transactions, such as online sales, the risks of chargeback will be higher. ![]() If a customer uses their PIN, you’ll only be liable for a chargeback if the goods are faulty or aren’t as described. You can be charged up to 120 days after the transaction has been debited or from when the goods or services were due to be received.
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