A Fractional CFO's Guide to Getting Paid Faster and Reducing No-Shows
Learn how to automate your invoicing and payment process to get paid faster and reduce no-shows as a fractional CFO.
You've invested time and expertise into helping a client grow their business, but the payment is nowhere to be found. You've sent multiple reminders, but the client is still stalling. This is a frustrating scenario that many fractional CFOs face, especially when working with clients who fail to commit to payment terms. In this guide, we'll show you how to automate your invoicing and payment process to get paid faster and reduce no-shows.
Why this keeps happening
The problem lies in the lack of clear payment terms and the absence of a contract. Many fractional CFOs fail to send invoices on time, leading to delayed payments. Moreover, the lack of a deposit system can put you at risk of losing money if the client decides to cancel the engagement. This can be especially damaging when working with high-ticket clients.
Real example
Take the case of Sarah, a fractional CFO who worked with a client to implement a new financial system. The client agreed on a payment plan of $5,000 upfront, but failed to pay on time. Sarah had to send multiple reminders and ultimately had to write off the payment as bad debt.
The habits that fix this permanently
These are the non-negotiables for getting paid reliably in your profession:
How to implement this step by step
Step 1: Set Clear Payment Terms
When working with clients, it's essential to set clear payment terms that outline the payment schedule, amount, and any late fees. Consider including a deposit system to secure payment upfront. For example, Sarah requires a 20% deposit from clients before starting work on a project. This ensures that she receives payment upfront and can focus on delivering high-quality services to her clients.
Step 2: Use a Contract to Protect Yourself
A contract is a vital document that protects you from non-payment and ensures that the client understands their obligations. Make sure to include all the necessary details, such as payment terms, scope of work, and cancellation policy. Consider using a contract template that outlines the terms and conditions of the engagement.
Step 3: Invoicing on Time
Invoicing on time is crucial to ensure timely payment. Set reminders to ensure that you send invoices on time, and consider using automated invoicing tools like Becflow to streamline the process. For example, you can set up automatic reminders to send invoices to clients on a specific date, reducing the likelihood of delayed payments.
Step 4: Consider Charging a Retainer Fee
Charging a retainer fee can help secure recurring payment and ensure that the client is committed to the engagement. Consider charging a monthly or quarterly fee based on the scope of work and the client's needs. For example, Sarah charges a $1,500 monthly retainer fee to clients who require ongoing financial guidance.
Step 5: Implement a Cancellation Policy
A cancellation policy is essential to protect yourself from last-minute cancellations and ensure that the client understands the consequences of cancellation. Consider including a clause that outlines the cancellation fees and the notice period required for cancellation. For example, Sarah requires a 30-day notice period for cancellation and charges a 50% cancellation fee for clients who cancel within the notice period.
The Becflow solution
Becflow's invoicing and payment platform helps fractional CFOs like you automate your payment process and get paid faster. With AI-powered contracts, payment links, and automatic reminders, Becflow streamlines the invoicing process and reduces the likelihood of delayed payments. Try Becflow today and start getting paid faster and reducing no-shows.
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