As an entrepreneur, it is important to have a good overview of outstanding invoices from debtors. That way, you can manage your cash flow better and avoid incurring unnecessary costs by having to pay interest on late-paid invoices, for example. Here are some tips to keep an overview.
Use accounting software
Accounting software such as Exact, Twinfield or Moneybird allows you to store invoices and keep track of when they are due for payment. This means you always have insight into outstanding invoices and can send timely reminders if an invoice is not paid on time.
Send reminders
If an invoice is not paid on time, it is wise to send a reminder. In this reminder, you indicate that the invoice has not yet been paid and request payment. Sending timely reminders prevents invoices from remaining unpaid unnecessarily long.
Keep your records
Make sure you keep good records and that you always know which invoices are still outstanding. It is wise to make an overview of all outstanding invoices and update it regularly.
Work with payment deadlines
By agreeing payment terms with your customers, you know when to expect the money and can take this into account when managing your cash flow.
Make clear agreements with your customers
Make clear agreements with your customers about payment terms and the consequences of not paying invoices on time. This way, you avoid uncertainty and can take timely action if an invoice is not paid on time.
By keeping good records and sending timely reminders, you prevent invoices from being outstanding unnecessarily long. This way, you can better manage your cash flow and avoid incurring unnecessary costs.
Outsourcing debtor management or opting for factoring
Another additional option: outsourcing your debtor management. This way, you take care of your debtors and reduce the risk of non-payment. You no longer have to keep track of which reminders you still need to send out and which invoices have not been paid for some time.
You can also opt for factoring. Here, you sell your invoices to a factoring company. This means you get paid immediately, and no longer run any risks. Would you like to know more about the possibilities of factoring at Factris? Feel free to contact us for advice.