Righto then, gather round folks. In less than 30 days, the 2018/19 financial year will be over. If you’re anything like us, this final month will be an absolute mad dash to make as much money as possible. But money on paper is different to money in the bank. So if you want all your invoices paid before the 30th June, this is what you need to do:
1. Consider offering an “early payment discount”. It doesn’t need to be much, even just $20. The amount is academic- it’s the mere saving that will do it. If you were my supplier and you offered me the chance to save some money, I’d absolutely take you up on it. For tight asses like I am, any discount is a good discount.
2. Set your ultimate due date as Tuesday 25th June. This gives you a 5 day buffer before the 30th which falls this year on a Sunday.
3. For very overdue invoices, ask the customer to make a part payment of only 10%, but sell it as money they will get back as a GST credit. Obviously this trick only works if you’re registered for GST, but a payment of ANY amount towards your invoice has a multitude of benefits- it resets the Statute of Limitations for another 6 years, it gets you some money, you’ve reduced your overall risk by 10%, the customer is now “invested” in repaying the debt. I could go on and on.
4. Phone your customers to ensure they have received your invoice. Word it as a “courtesy reminder given the time of year”. This works incredibly well.
5. Be proactive. If ever there was a month to be super diligent, super thorough and super vigilant with your invoicing, June is it. Put you and your business first and prioritise getting paid by the 30th.