15th April, 2019
As a tradie, you want to get paid faster to make sure your cash flow doesn’t become a trickle. Here are four tech tricks from Kellie Byrnes to help you start pumping money in.
One of the biggest problems most tradies have to deal with each year is trying to get paid faster.
Whether you’re a plumber, electrician, painter or other contractor, you no doubt find that too many hours are taken up with trying to get money from customers, both individuals and businesses (like builders, as one example).
Thankfully, though, technology now makes it easier to get paid faster and with less hassle.
Here are some top ways tech can be your best friend when it comes to cash flow.
First up, take advantage of technology by putting invoice templates to work for you.
If you’re unsure where to start in creating simple, branded invoices, MYOB offers a fully customisable, free invoice template here.
But even using a template can become a burden if you’re invoice many times a day, and that’s where invoicing software and online accounting software can help.
READ: 4 tips for taking the stress out of being a tradesperson
Use quality invoicing software that allows you to send out bills to people on the spot, right at the time when you’re finishing the job.
It doesn’t matter whether it’s a specific invoicing program or a trusted online accounting offering which has in-built invoicing; just make sure the tech can be used from your phone or tablet so you can invoice right away.
It should also allow you to set up automated invoicing so that each time you finish a job you just have to input a couple of details and your invoice will be ready to go in a few seconds.
This ensures consistency of invoicing, and makes your bills look more professional.
In turn, this encourages customers to pay you on time.
READ: Bookkeeping basics for trades and construction businesses
It also reduces your workload and lowers the risk that you will forget to invoice a client.
When customers get your bill the same day, they work out that you expect quick payment, and are more likely to pay you ASAP.
Plus, by invoicing while you’re still at their house, and telling them you have done so, they can’t turn around and say they never got your invoice in the first place.
To get paid with less hassle, you need customers to pay you earlier.
To prod them to do this, look for ways to make payments as easy as possible for them.
A good way to do this is to accept multiple transaction types.
These days, people don’t like being restricted to just bank deposits or check payments; instead they like choice.
If clients can choose the payment type that suits them on the day, they’re more likely to complete the transaction.
Technology helpfully makes it simple to give people this kind of choice.
For example, use mobile point of sale machines to swipe cards, or smart banking applications (such as Kounta, PayPal, Square and more) to enable the input of card details while you’re on site.
READ: Secret weapons to boost your trades business
There are even some tech products which will enable you to confirm and clear checks on the spot, if you want to offer that type of payment option.
Just make sure that whichever system(s) you turn to, the software comes from a trusted, well-established provider that takes security seriously.
Also, secure the devices you use to take payments, so hackers can’t break in and access anyone’s details that way.
Customers are worried about having their personal and financial details stolen and otherwise misused these days.
This means you need to make it clear to them that you only transmit data via secure methods, and will keep their information safe at all times.
Once they’re comfortable that security is high, they will be more likely to pay you then and there.
When people don’t pay within the allotted timeframe listed on your invoices, you need to chase them up to get their payment.
While in the past this was a manual task, done via letters, phone calls and/or emails, today you can save yourself time, money and stress by completely automating the process with technology.
The invoicing or online accounting software you use to send out invoices should have a built-in feature that sends reminders automatically, as soon as bills become overdue.
Set up this tech to remind people once a week or fortnight, until they have paid.
By seeing how serious you are about chasing payment, clients are more likely to cough up the funds sooner – all without you even having to do any extra chasing yourself.
Is it taking you too long to get paid? Time to tool up with MYOB’s invoice and payment solutions.