When you run your own business, doing your work typically isn't the hardest part of your job. Rather, it's getting paid for it.
"Cash flow is the lifeblood of any business. If your business relies on regular payments from clients, however, delays can be aggravating, or even threaten to close your business," says Inc.com contributor Jayson Demers. "In an ideal world, you'd simply be able to sever ties with clients after several subsequent late payments. Unfortunately, many small businesses are still struggling to build reputations within their respective industries, which means they need every client they have, late payments or not."
If you're struggling with high receivables, consider automating your billing and payments.
"There are many invoicing apps available; some are even free. Automated invoicing ensures you never miss billing someone for the work you do, among myriad other benefits," Demers says. "To make things easy, choose an invoicing solution that allows one-click payment. If your clients receive an invoice with a link they can click to pay using a stored credit card or PayPal account, you'll be much more likely to receive payment without delay."
For recurring clients, especially, Demers likes PayPal. "Clients agree to automatic recurring billing, and PayPal takes care of the rest," he says. "Each month, it charges their credit card and deposits the funds to your PayPal account, with a simple email notification that the charge was successful."