A recent report issued by Xero suggests that a staggering $115 billion is paid late each year by big business to small business and the average payment is 23 days late.
What can Small Businesses do to help themselves get paid faster?
Set shorter payment terms
The report by Xero also suggests that on average, customers pay invoices about a week late. Small business should factor this in when setting payment terms.
Use automated payment reminders
Something else to implement is the use of automated invoice reminders in Xero. Set friendly email reminders that are sent when a bill becomes a day late. Or even better, send an automated email a day or two before the invoice is due.
Add a payment service to your invoice
Add PayPal or Stripe to your customer invoices allowing them to make their payment online as soon as the invoice is received. Xero suggests that invoices with an attached payment service were paid an average 55% sooner than invoices without.
See the full report by Xero
Access the full report compiled by Xero by clicking here or by visiting Xero Small Business Insights.
How Xero can help your Small Business?
Hawkesbury Bookkeeping is a Xero Certified Advisor and can help you setup Xero and get paid faster. Book a Chat and get online with Xero today.
