There’s no doubt that late payments are one of the biggest challenges UK businesses face on a daily basis.
For a lot of the clients you work with, it’s likely to be a real strain on resources and capital; the reality is that cash flow problems caused by outstanding invoices have the potential to significantly hinder the future growth of so many small and medium businesses.
And when you consider the fact that it’s thought that more than 1 in 5 insolvencies are primarily caused by late payment for goods or services*, the negative impact unpaid invoices can have is plain to see.
If you’re a bookkeeper or accountant trying to manage and ease the strain of late payments for your clients, the job doesn’t get any easier. Even if your clients’ businesses are growing, if payment isn’t made promptly, there’s no guarantee that increased profits will result in more money in their pockets…and that of course, will create further problems later down the line.
It’s a difficult predicament to be in and one that has sadly become very much the norm for a lot of businesses here in the UK.
While it’s clear that consistent late payments are not a sustainable way for SMEs to operate day-in day-out, a suitable quick fix isn’t easy to come by. Factoring and invoice discounting may have their place, but these options often act as more of a sticking-plaster remedy than a long-term solution. So, what’s the answer?
Take back control of your clients’ invoicing process
When you’re regularly dealing with late payments and chasing invoices, it can feel like the ball is always in the customers’ court, rather than that of your clients.
The trouble with chasing payments for clients is that there is no one-size-fits-all approach when it comes to managing customer relationships. Maintaining strong relations is crucial for business growth and success, particularly for small businesses, but at times it can feel like that relationship is put at risk when payments have to be chased regularly.
That’s where Paycada fits in. A clever and intuitive accounting tool, Paycada has been designed to give control back to bookkeepers and accountants by taking care of the invoicing payment process from the moment each invoice is created right through to payment.
With the ability to adapt to customer behaviour, every communication and interaction made by Paycada sets the right tone appropriate for each individual customer – so you can be confident that strong relationships are maintained, even when chasing for payments.
Sitting neatly next to XERO, Paycada simplifies the invoicing process by removing all barriers, so that payments can be made quickly and easily by customers and payment collection is simple and pain-free for businesses.
How does it work?
- You or your clients' invoice as normal from their existing accounting software.
- Paycada automatically imports every invoice created and gets to work to collect payment.
- Intelligent, tone-appropriate payment reminders are sent to customers in advance of payment deadlines.
- You have complete control over those customers you would like to be chased for payment and those you don’t.
- Customers are encouraged to pay quickly through the easy-to-use Paycada payment portal, which remembers customer details and allows multiple payments to be paid at once.
- You can continue to track, analyse and report on all invoicing, with full visibility across every transaction and interaction with your client’s customers, for peace of mind and clarity.
To find out more about Paycada, and how it can simplify the invoicing process for your clients while reducing the strain of credit control for you, feel free to reach out and get in touch - I’d welcome a conversation with you.
*https://www.r3.org.uk/press-policy-and-research/r3-blog/more/28738/page/2/late-payment-causes-effects-and-solutions/
