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What Does Invoicing, Electronic Payments And A System In Place Mean For Your Business? Prompter Payments, Most Likely…

The easiest way to ensure that your business is receiving the payments from invoices without delay is to remain transparent with your customers throughout the process. Getting an invoice paid on time starts with making it easier for your customer to pay.

Create Detailed Invoices

Create for your customers an invoice that includes the essential details and information about the job or service you have provided and the additional information such as expenses that they might want to be included. Anticipating these potential additional details may shorten the time it takes for your customers to pay.

Send Prompt Invoices

While it’s fresh in your customer’s mind, send out the invoice as soon as the work is completed to ensure that they are aware of what they owe. There may be alternative methods to invoicing that you can use for your customers, such as electronic invoicing software or in-person with a mobile EFTPOS machine.

Invoice In Stages

Consider a phased approach to invoicing, particularly if your work is being conducted over extended periods of time. Splitting it over multiple payments allows the money to continue to flow in and could offset some of the risks to your business.

Allow Electronic Payments

Taking “pay now” credit card transactions can assist in speeding up payments from your customers. If sending your invoices electronically, consider adding a payment-add on option (such as Stripe or PayPal).

Make Payment Terms Shorter

Invoices with shorter payment terms get paid more quickly, with more asking for payment within two weeks instead of the previous norm of thirty days. Discuss payment terms with your customers long before you get started to avoid confusion later on.

Put Systems In Place

Chasing down payments takes up valuable time and can be stressful. Consider employing a bookkeeper or accountant to assist you with following up on those overdue invoices or set up automatic reminders in your accounting software to be sent to customers as an invoice nears its due date.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.


What our Client Say

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier