Four steps to better cash flow

Managing cash flow can be tricky, but there are a few things you can do to help manage your cash flow and get paid faster. By getting your invoicing right, invoicing customers as soon as possible, and using tools like invoice reminders, this can all help move payments along.

1.    Get your invoicing right

Make a habit of sending invoices quickly. If you’re out and about and that usually delays your invoicing, use MYOB Online Invoice Payments to invoice your customer on the spot using your smartphone – don’t wait until you get back in front of your computer. You can also take payment on the spot which is much easier than following up afterwards. If you’re an MYOB Business user, login to your account, navigate to the sales tab, and then select “turn on invoice payments” and start their application.

2.    Make your invoices easy to pay

Email your invoices so that your customer receives them quickly. Use full descriptions so that your customer doesn’t need to query the invoice as this will result in a delay in payment. Offer different payment methods so it’s easy for your customer to pay you.

3.    Send invoice reminders

Automate your invoice reminders so it sends an automatic reminder about invoices being due. When setting up invoice reminders, you can either set it up for all your customers or specific customers. Once this is set up, your customers will receive an email that will give them access to their list of unpaid, online invoices. You can customise your reminder message, and choose when you want them to be sent.

4.    Keep an eye on your accounts receivable

Keeping a close watch on your accounts receivable allows you to see how many invoices, and for what amount, are outstanding. This allows you to follow up with customers sooner rather than later and can help prevent late payment or payment being received months down the track.

If you need help organising your invoicing, or creating an accounts receivable process, get in touch and we can help you set this up.