The basic principle on which businesses run is selling, whether it’s selling ideas, products or services. At the end of the day, a sale is only completed when the customer receives his purchase, is sent an invoice for payment and he finally makes that payment. However, sometimes it gets to be a cumbersome task actually getting customers to pay their dues. This can become quite a serious problem, and businesses may suffer tremendous financial setbacks due to clients who refuse to pay up.
So what can a business owner do to ensure that his company does not go into losses over this? Here are a few steps:
1. Hire a good accountant.First of all, it is important to conduct regular audits in order to determine which clients have not paid inspite of being billed. Also, it’s a good idea to ensure that there is a smooth and efficient system of billing and invoicing happening, and clients are first of all, being sent their bills on time. There are many professional accountants in Vancouver. Hiring a good Vancouver accounting service is the first step towards preventing money from falling into a black hole.
2. Regularly following up with the client. It is important to send regular payment reminders to clients if they don’t pay up after a certain interval of time. This does not mean pestering them or pushing them too hard- after all, businesses are built on customer retention and we don’t want to scare away a customer. But a polite courteous call gently reminding the customer of their financial obligation generally does the trick.
3. Setting up a system of easy monthly instalments. This system would vary from business to business, and may not work for every type of business. However, it may be a good idea to have some sort of easy payment scheme for clients wherein they can pay a small amount of the total sum at regular intervals so that it is easier on them, and the business does not suffer losses either. The amount of each instalment and the duration of the total scheme could be decided depending upon the customer’s history with the business and their specific requirements. However, it is important here for the business owner to ensure thatthey set up a system of regular monitoring to make sure that payments are coming in on time. Many professional accountants in Vancouver can help you set up such a systemto ensure regular cash inflow.So here’s another reason to hire a good Vancouver accounting service.
4. Hiring a professional recovery service. If a client is being extremely difficult and not ready to pay up after a lot of persistence, then it’s time to get some professional help. It’s important to select a good recovery service, as they should not harm client-customer relations, while at the same time ensuring that the job gets done. Also, different clients would require varying degrees of follow up, so it’s important to discuss the client history in detail with the collection agency.
Difficult clients can be a business owner’s nightmare. Not only does it get financially draining for a business owner, it can give them quite a few sleepless nights too. However, with a systematic method of collection setup in place, one can minimise this risk and ensure the smooth functioning of business operations.
Mackenzie group and company is a leading assurance, tax, corporate advisory and business consultancy firm based in Vancouver. Its Accountants Vancouver services unlocks the potential for growth at reasonable prices.