If you're afraid to discuss finances with your clients, you may not be getting paid on time or what you're worth. In fact, you need to begin the payment conversation early so you can gain some control over the outcome. Figure out your costs and set your fees accordingly. This discussion will provide your clients with price transparency and show them that your efforts are valuable.
Businesses that work with other businesses (B2B) face some of the same inevitable costs. Obviously, there's overhead - employees, office space, utilities - and these expenses have to be paid on a regular basis. When you assume that your clients know that you have bills to pay, you might also assume that they'll pay your invoices on time so you can cover your expenses, right? You can't always count on that.
When it comes to big projects or recurring billing, you'd think that your client would follow through on their contract with your business. You've put everything in writing, agreed on payment terms and both parties signed the contract. Later, after several late payments or non-payment, you find out that your client is unable to pay their bills after all. A business credit manager has the responsibility of underwriting credit applications so you're protected from non-paying customers. Do some research before issuing credit to avoid this problem.
As a helpful tip, we suggest reminding clients of payment due dates before they're due. This is especially true if it's a new client or a client that has paid late in the past. Other best practices include:
Every business and every person within that business is distracted and busy. These assumptions will greatly limit your cash flow and your ability to gain control over your business finances. Drop these money myths and get your invoices paid sooner rather than later.