A Remote Accounting Firm's Guide to Getting Paid Faster and Reducing Late Payments
Learn how to create a payment system that works for your remote accounting firm and get paid faster, even with clients who struggle to pay on time.
You've spent hours crunching numbers for a client, only to have them disappear on you with no payment and no explanation. Days turn into weeks, and you're left wondering if you'll ever see a dime. This is a painful reality for many remote accounting firms, but it doesn't have to be. In this guide, we'll show you how to streamline your payment process and get paid faster, even with clients who struggle to pay on time.
Why this keeps happening
The problem is that traditional invoicing methods just don't work for remote accounting firms. Clients can take advantage of the fact that you don't have a physical office, and they can easily ignore your invoices or make excuses for not paying on time. This is especially true for clients who are used to working with larger accounting firms and are used to paying on their own terms.
Real example
Take Sarah, a remote accounting firm owner who lost out on $1,000 in billable hours because her client didn't pay her on time. Sarah had sent multiple reminders, but the client just kept stalling, saying they were 'tied up with other projects.' It wasn't until Sarah threatened to cut off services that the client finally paid up, but the damage was done. Sarah had already spent hours working on the project and wasn't able to bill for it.
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: Create a Clear Payment Policy
A clear payment policy is the foundation of a successful payment system. It outlines your terms and conditions, including when payments are due and what happens if they're late. Make sure your policy is clear, concise, and easy to understand. Include details such as payment methods, payment due dates, and late payment fees. You can include a sample payment policy in your client onboarding documents or send it to clients separately. For example, Sarah included a payment policy in her client onboarding documents, which stated that payments were due within 7 days of invoice receipt, and that late payments would incur a 2% fee. This helped set clear expectations with her clients and reduced the risk of non-payment.
Step 2: Use a Payment Portal
A payment portal is a secure online platform that allows clients to pay invoices easily and securely. It can also send reminders to clients when payments are overdue. Look for a payment portal that integrates with your accounting software and has features such as automatic reminders, payment tracking, and customizable payment links. For example, Sarah used a payment portal that sent automatic reminders to clients when payments were overdue, which helped reduce the number of late payments she received.
Step 3: Offer Incentives for Timely Payment
Offering incentives for timely payment can encourage clients to pay on time. Consider offering discounts for early payment or bonuses for timely payment. For example, Sarah offered a 2% discount for early payment, which encouraged clients to pay their invoices quickly. She also offered a bonus of $100 for clients who paid their invoices on time, which helped motivate them to stay on schedule.
Step 4: Automate Your Invoicing and Payment Process
Automating your invoicing and payment process can free up more time for high-value tasks. Consider using accounting software that can automate invoicing, payment tracking, and reminders. For example, Sarah used accounting software that automatically generated invoices and sent reminders to clients when payments were overdue. This helped her streamline her payment process and reduce the amount of time she spent on administrative tasks.
Step 5: Communicate Clearly with Clients
Clear communication is key to a successful payment system. Make sure to communicate clearly with clients about your payment expectations and provide regular updates on their account status. For example, Sarah sent regular updates to clients on their account status, including when payments were due and when payments had been received. This helped keep clients informed and motivated to pay on time.
The Becflow solution
Becflow is a B2B SaaS tool that helps remote accounting firms like yours get paid faster and reduce late payments. With Becflow, you can create AI-powered contracts, send payment links to clients, and automate reminders to ensure timely payments. Try Becflow today and start getting paid faster, with less hassle and stress. Sign up for a free trial and see the difference for yourself.
Get paid faster, automatically
AI contracts, invoices with payment links, and automatic reminders. All in one place. Free for 7 days.
Start free trial