Get Your Money! Making Sure Customers Pay What They Owe

Is making sure customers pay the most important part about running a business? Some will say no. But many will say yes. In any case, it’s definitely one of the most important aspects! So if customers owe you money, you need to make sure you’re going about it the right way.

The when

So when do you actually expect to get paid? The best thing you can do for both you and your customer is be upfront about this. Make sure it’s absolutely clear to them when exactly you need the full payment by. This should be presented to them in writing. This way, you can keep yourself in the legal right should they fail to make a payment. If you are vague about when the payment will be due, the customer will probably take longer to raise the funds.

The options

Here’s a strange mistake that businesses keep making. They want to get paid from as many directions as possible. Yet they are severely limited when it comes to the amount of payment options available to the customer! The bottom line is that you are more likely to receive payment if you have several methods available. Credit cards, debit cards, checks, mobile payments, phone payments… Heck, you could even accept cryptocurrency like BitCoin if you think that would help your business!

The system

So what’s the overarching system you use to actually receive your money? Of course, I use the word “system”, but many businesses will use more than one. This will often depend on the amount of payment methods you’re accepting. Many will use a simple online payment gateway for credits cards, cryptocurrency, and phone payments. But what about methods like check? And what if you’re looking into account receivable? (This helps you borrow on the basis of expected payments from customers.) Make sure the methods you use to actually receive the payments are foolproof.

Keeping track

So you’re getting good business. You’ve got a bunch of people paying you, so you’ve got money coming in from all directions. But you’ve still got a few people who owe you money. How do you keep track of all of these people? You need some sort of database that will help you keep track of all the relevant names and figures. I’m referring, of course, to the art of bookkeeping. It can be a tricky business, even with a highly experienced accountant on board. This is why you should be looking into bookkeeping software. It makes the job a lot easier to handle!

Problems

So, here’s the part we all hope we don’t have to deal with. What if a customer simply isn’t paying you? The answer actually seems a lot simpler if the customer is refusing to pay you. In this case, taking legal action against them to compel them to pay is the simplest answer, if they persist. But what if someone seems to be genuinely forgetful? Or if someone really doesn’t have the money? Here is where things become a bit more awkward. Legal action might seem a bit harsh, after all! In such a case, it may be better to work with a collection agency. Whatever route you take, make sure your customers pay.