{"id":4987,"date":"2019-04-10T09:00:15","date_gmt":"2019-04-10T16:00:15","guid":{"rendered":"https:\/\/pasabanaccounting.com\/?p=4987"},"modified":"2024-01-30T17:08:14","modified_gmt":"2024-01-31T01:08:14","slug":"10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle","status":"publish","type":"post","link":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/","title":{"rendered":"10 tips to reduce the dreaded “feast or famine” customer cash flow cycle"},"content":{"rendered":"

Steady, reliable cash flow is crucial for the survival of any small business \u2013 so taking steps to ensure your customers pay promptly should be a key priority.<\/p>\n

When your clients consistently pay on time, you\u2019ll avoid the dreaded \u201cfeast or famine\u201d cycle. You\u2019ll be able to pay your vendors, suppliers, and employees on time \u2013 and not least of all, yourself.<\/p>\n

Implement these ten tips now to start getting paid without delay.<\/p>\n

Provide payment terms up front<\/h2>\n

Before you start working with any new client, always provide your terms in writing. Clearly state your rates, payment due dates, and policies for late payment \u2013 including any fees incurred on balances owing.<\/p>\n

Invoice immediately<\/h2>\n

If you\u2019re currently preparing your invoices manually, switch over to an accounting system with automated billing. You\u2019ll never forget to invoice a client, and you\u2019ll eliminate errors as you save time. The first time a client is billed make sure the contact information on your invoice is complete to avoid delays with processing.<\/p>\n

Follow up<\/h2>\n

Call your customer immediately when a payment is past due. Ask for the status of the invoice and if there\u2019s anything you can do to speed up payment. Sometimes a simple change, like including a purchase order number on the invoice, can speed up processing.<\/p>\n

Reduce terms<\/h2>\n

Net 30 payment terms are fairly standard in business, but there\u2019s nothing stopping you from asking for payment sooner. Some business owners make payments due at Net 7 or 10; others stipulate payment is due upon receipt of invoice.<\/p>\n

Reward early payers<\/h2>\n

Consider offering customers a 2% discount when they pay their invoice within ten days. In this scenario, a $1000 invoice would be reduced to $980 \u2013 not a huge loss for you, but an attractive cash-saving incentive for your customers.<\/p>\n

Charge interest<\/h2>\n

As part of your terms, specify that if a client\u2019s payment is past due, a weekly fee of 2% will be added onto the total until funds are received in full.<\/p>\n

Get paid upfront<\/h2>\n

Collect a partial deposit \u2013 or the entire amount in full \u2013 before you provide a product or service to your customers.<\/p>\n

Go mobile<\/h2>\n

Forego invoicing altogether by having your customers pay on the spot with mobile debit and\/or credit payments.<\/p>\n

Suspend service<\/h2>\n

Stop your supply of products or services until you receive payment. With this tactic, you\u2019ll avoid the accumulation of an even greater loss with a consistently late or non-paying client.<\/p>\n

Stay on top of AR<\/h2>\n

Monitor your accounts receivable on a weekly basis so you can act fast if a customer hasn\u2019t paid on time. An AR aging report<\/a> can help you easily track outstanding invoices right in your QBO accounting software \u2013 or create an Excel report you can track manually if you prefer.<\/p>\n

Final thoughts<\/h2>\n

Perhaps the most important tip for encouraging prompt payment is excellent communication.<\/p>\n

When you follow up on a late invoice, explain why it\u2019s important to receive timely payment in order to run your business effectively. Ask when you can expect payment, and agree on a date.<\/p>\n

If the money still isn\u2019t forthcoming, offer to negotiate a payment schedule as a next-to-last option \u2013 before you have no choice but contact a collection agency<\/p>\n","protected":false},"excerpt":{"rendered":"

Steady, reliable cash flow is crucial for the survival of any small business \u2013 so taking steps to ensure your customers pay promptly should be a key priority. When your clients consistently pay on time, you\u2019ll avoid the dreaded \u201cfeast or famine\u201d cycle. You\u2019ll be able to pay your vendors, suppliers, and employees on time … Continued<\/a><\/p>\n","protected":false},"author":12,"featured_media":5484,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[30,35],"tags":[],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"\n10 tips to reduce the dreaded "feast or famine" customer cash flow cycle - Pasaban Accounting Solutions, LLC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"10 tips to reduce the dreaded "feast or famine" customer cash flow cycle - Pasaban Accounting Solutions, LLC\" \/>\n<meta property=\"og:description\" content=\"Steady, reliable cash flow is crucial for the survival of any small business \u2013 so taking steps to ensure your customers pay promptly should be a key priority. When your clients consistently pay on time, you\u2019ll avoid the dreaded \u201cfeast or famine\u201d cycle. You\u2019ll be able to pay your vendors, suppliers, and employees on time … Continued\" \/>\n<meta property=\"og:url\" content=\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/\" \/>\n<meta property=\"og:site_name\" content=\"Pasaban Accounting Solutions, LLC\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-10T16:00:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-31T01:08:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1401\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Christian Rigsby\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Christian Rigsby\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/\",\"url\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/\",\"name\":\"10 tips to reduce the dreaded \\\"feast or famine\\\" customer cash flow cycle - Pasaban Accounting Solutions, LLC\",\"isPartOf\":{\"@id\":\"https:\/\/pasabanaccounting.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg\",\"datePublished\":\"2019-04-10T16:00:15+00:00\",\"dateModified\":\"2024-01-31T01:08:14+00:00\",\"author\":{\"@id\":\"https:\/\/pasabanaccounting.com\/#\/schema\/person\/270f0d3a057b474f3d79e3af0e436be4\"},\"breadcrumb\":{\"@id\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#primaryimage\",\"url\":\"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg\",\"contentUrl\":\"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg\",\"width\":1920,\"height\":1401},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/pasabanaccounting.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"10 tips to reduce the dreaded “feast or famine” customer cash flow cycle\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/pasabanaccounting.com\/#website\",\"url\":\"https:\/\/pasabanaccounting.com\/\",\"name\":\"Pasaban Accounting Solutions, LLC\",\"description\":\"Accurate and relevant financial information in real-time\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/pasabanaccounting.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/pasabanaccounting.com\/#\/schema\/person\/270f0d3a057b474f3d79e3af0e436be4\",\"name\":\"Christian Rigsby\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/pasabanaccounting.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/093c35629a5870b796b5a11a2e36cfe4?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/093c35629a5870b796b5a11a2e36cfe4?s=96&d=mm&r=g\",\"caption\":\"Christian Rigsby\"},\"url\":\"https:\/\/pasabanaccounting.com\/author\/christian_rigsby\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"10 tips to reduce the dreaded \"feast or famine\" customer cash flow cycle - Pasaban Accounting Solutions, LLC","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/","og_locale":"en_US","og_type":"article","og_title":"10 tips to reduce the dreaded \"feast or famine\" customer cash flow cycle - Pasaban Accounting Solutions, LLC","og_description":"Steady, reliable cash flow is crucial for the survival of any small business \u2013 so taking steps to ensure your customers pay promptly should be a key priority. When your clients consistently pay on time, you\u2019ll avoid the dreaded \u201cfeast or famine\u201d cycle. You\u2019ll be able to pay your vendors, suppliers, and employees on time … Continued","og_url":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/","og_site_name":"Pasaban Accounting Solutions, LLC","article_published_time":"2019-04-10T16:00:15+00:00","article_modified_time":"2024-01-31T01:08:14+00:00","og_image":[{"width":1920,"height":1401,"url":"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg","type":"image\/jpeg"}],"author":"Christian Rigsby","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Christian Rigsby","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/","url":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/","name":"10 tips to reduce the dreaded \"feast or famine\" customer cash flow cycle - Pasaban Accounting Solutions, LLC","isPartOf":{"@id":"https:\/\/pasabanaccounting.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#primaryimage"},"image":{"@id":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#primaryimage"},"thumbnailUrl":"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg","datePublished":"2019-04-10T16:00:15+00:00","dateModified":"2024-01-31T01:08:14+00:00","author":{"@id":"https:\/\/pasabanaccounting.com\/#\/schema\/person\/270f0d3a057b474f3d79e3af0e436be4"},"breadcrumb":{"@id":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#primaryimage","url":"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg","contentUrl":"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg","width":1920,"height":1401},{"@type":"BreadcrumbList","@id":"https:\/\/pasabanaccounting.com\/10-tips-to-reduce-the-dreaded-feast-or-famine-customer-cash-flow-cycle\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/pasabanaccounting.com\/"},{"@type":"ListItem","position":2,"name":"10 tips to reduce the dreaded “feast or famine” customer cash flow cycle"}]},{"@type":"WebSite","@id":"https:\/\/pasabanaccounting.com\/#website","url":"https:\/\/pasabanaccounting.com\/","name":"Pasaban Accounting Solutions, LLC","description":"Accurate and relevant financial information in real-time","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/pasabanaccounting.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/pasabanaccounting.com\/#\/schema\/person\/270f0d3a057b474f3d79e3af0e436be4","name":"Christian Rigsby","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/pasabanaccounting.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/093c35629a5870b796b5a11a2e36cfe4?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/093c35629a5870b796b5a11a2e36cfe4?s=96&d=mm&r=g","caption":"Christian Rigsby"},"url":"https:\/\/pasabanaccounting.com\/author\/christian_rigsby\/"}]}},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/pasabanaccounting.com\/app\/uploads\/cash-1169650_1920.jpg","_links":{"self":[{"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/posts\/4987"}],"collection":[{"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/comments?post=4987"}],"version-history":[{"count":1,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/posts\/4987\/revisions"}],"predecessor-version":[{"id":9240,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/posts\/4987\/revisions\/9240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/media\/5484"}],"wp:attachment":[{"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/media?parent=4987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/categories?post=4987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pasabanaccounting.com\/wp-json\/wp\/v2\/tags?post=4987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}