There is a myth that service-based businesses do not experience the same pains of inconsistent cash flow that a project-based business will experience.
In the perfect world, customers would pay you every single month and never be late. After all, you’re providing fantastic service, right? It shouldn’t be unreasonable to expect your customers to pay their bill on time. You even have clients who understand they will be billed every month on a recurring basis, should be guaranteed money in the bank.
The sad reality is many serviced-based businesses are handing out their services every month for free. Essentially loaning their clients thousands of dollars in money and becoming their bank.
Now sure, the customer is responsible for paying their bill, but have you ever thought of how many barriers you may have accidentally put between you and your customers way when it comes time to pay you?
Making it hard or inconvenient for your customers to pay you is going to lead to more customers forgetting to pay when you send them an invoice. All those skipped payments begin to add up, and soon your company’s accounts receivable has skyrocketed past sixty days.
There is hope, even if you’re A/R is over a hundred days, you can turn those outstanding dollars into money in your bank account if you follow these steps.
Copy and paste this URL into your WordPress site to embed
Copy and paste this code into your site to embed