Crafting Effective Invoice Terms and Conditions Wording for Administration

Invoice terms and conditions wording for Administration

a recent study showed that most invoices are paid late this video covers the top 10 things you can do to increase the chances that you'll be paid quickly and there's a theme here communication is key having a conversation with a client about payment terms before starting the work is a great way to set expectations as for the terms themselves if you think that giving your clients 30 days to pay is still normal think again the vast majority of small businesses now give two weeks or less and over half ask for payment within one week this is totally reasonable especially if you make it easy for your clients to pay will you accept credit cards electronic bank payments and checks or only some of the above your terms should spell this out including any bank details necessary for electronic payments confusion can lead to pay lags so separate the different parts of the job into different line items using simple language that your client will understand and if you have customers overseas clearly indicate which currency applies consider offering incentives are paying early say a two percent discount on invoices paid within seven days versus paying in full within the usual fourteen days this is the positive psychology alternative to charging penalties for overdue payments which is another option no matter what terms you offer the clock doesn't start ticking until your invoices are out the door so send them as soon as you can it's totally reasonable to deliver an invoice at the same time as you deliver the completed work invoicing software can really help here as it makes the process of creating and sending invoices that much easier it can be helpful to remember that the person who can pay you may not be the person who hired you or the person you sent the completed work to when in doubt ask and finally don't be afraid to remind that person that a due date is coming up if a payment is late let them know you're about to charge any late fees that they agreed to at the very least gently point out that the payment is overdue and remind them how they can pay you these 10 suggestions have worked for Xero customers looking to get paid faster and we hope they work for you too thanks for watching and make sure to check out our other small business guides you