Every pragmatic professional practice owner expects that some percentage of their billed services will not be paid—or at least not paid on time. Many architecture and design firms actually accommodate for “bad debt” in annual budgeting.
If your compensation is dependent upon bringing money in the door, you want to collect on as many outstanding invoices as possible, since even small fluctuations in your collection rate can have a huge impact on your bottom line.
Improving your cash flow starts by answering these two key questions:
- How can I ensure that all (or most) of my bills get paid?
- What behaviors, habits, skills, and processes will help maximize my collections?
To help you get started, here are some quick ways to effectively enhance your billing and payments and, in turn, minimize aged receivables:
- Send invoices promptly and on a consistent schedule.
- Use descriptive, easy-to-understand language in your invoices.
- Offer flexible payment options via an online payment solution like ClientPay.
Adopting a well-researched strategy and investing in the right solutions are imperative for tackling your outstanding invoices, lest they go unpaid. Remember: the longer a bill sits unpaid, the less likely it is that it will ever get paid.
To learn more about ClientPay, schedule a demo today!
