Streamlining Invoice Processes to Get Paid Faster Part 2
Our Sarasota construction attorneys have seen countless professionals end up in litigation over unpaid labor and services. Although payment disputes happen, we know that implementing the tips mentioned in part one along with those in this second part will prove beneficial to your bottom line.
Be Detailed and Clear
In construction, concise documentation is critical. Your invoices should be complete, accurate, and clear so your clients’ will understand what they need to pay. It’s also important to make paying invoices simple. Invoices should not be cluttered and the essential information should be easy to find. Clarity will ensure clients don’t push your invoice to the side. Be sure to include some of the following on invoices:
- Contact information
- Invoice number and issue date
- Payment due date
- Tax amount
- Late fees
- Payments methods accepted
- Information that is required by the client
- Description of services provided and cost of such
Give an Incentive
Learn the art of give and take. Just as you utilize late payments to enforce payments, entice clients to pay on time by offering them an incentive. This can come in the form of a discount that’s worth their time.
Electronic invoicing is the way to go. Not only does it cut down on wasting paper, it also speeds up the invoice cycle by saving you time. It also helps you save money since the process will be automated instead of having to remember to send out invoices by mail.
You must know when to be flexible. Offering flexible payment options is another way to make it worth their while to pay faster. If you don’t offer online payment, for example, clients are likely to pay less promptly. This could also mean payments by a payment reader that can be attached to a smartphone.
If you’ve done some of the above-mentioned tips (or more) and your clients are still failing to pay you, you need to take the next step. This may mean consulting with a Sarasota construction attorney that is experienced in mechanics lien to help you recover payments.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.