One of the most common problems that startups face nowadays are issues in collecting payments. For a small business with just enough money to fund everyday business operations, a simple case of late payment can cut down the stream of money, and might cause collapse in a business’ cashflow.
We all know that proper and balanced cashflow is very important, and if your number of A/P are greater than the receivables that comes in, then it would spell a lot of trouble for your business. In this article, we’ll discuss the modern day issues that involves late receivables, and how today’s technology could end this ongoing struggle in collecting payments.
Modern Day Late Payment Dilemmas
According to a blog by Xero, statistics show that 62% of startups doesn’t think they would survive more than 3 months if outstanding invoices remains unpaid.
When a startup business works within a very tight budget. Supposedly, one of their expectations is to get paid quickly by customers.
But sometimes, these expectations can’t just be met in an instant. There are moments that even though you had set the deadline to an invoice and assume that those invoices you sent out to clients will be paid, in the end, the thing that follows is the question of “when”?
There are even scenarios when business payments would come much longer than expected, from the usual 30 to 60 days or longer. The point is that you never really know when these expected payments would reflect as receivables in your ledger.
Good thing is that there are many ways on how you could solve these kinds of unwanted payment issues. Bill.com, the world’s best payment service network, and Xero, a beautiful accounting software have the solutions that will end all those modern day business dilemmas when it comes to late payments.
Bill.com : Accounts Receivable Automation and ACH
Forget the old process of distributing paper bills before it reaches approval. With Bill.com, you can do the AR process seamlessly — no printing and paper needed. All invoices can be delivered electronically and without hassle.
Aside from the fact that you don’t need someone to review those invoices, it also allows digital payment as you could choose the method on how you wanted it to be paid, whether it’s via Paypal, credit card or ACH. With Bill.com, collecting payments would definitely go faster.
You can also consider ACH Payments as a medium for collection. With this option, you can receive the money sooner, unlike the time span you experience when processing paper checks.
Xero : Direct Payment Option (New)
For users of Xero accounting software, you can now add payment options directly to your invoices in Xero.
Once you add a payment service, it will enable a Pay Now button to your online invoices, making it easier for your customer to pay you. It can take payments via credit card, Stripe and even Paypal.
Already have a payment service added to your Xero account? If not, you can visit Xero’s Help Centre to learn more about adding payment options in Xero.