Chasing invoices is a time sink your business could do without. Automated invoice chasing (also known as accounts payable automation) provides a solution.
Plug an automated invoice chasing tool (like Satago) into your accounting software and let the machines do the hard work for you. All you need to do is create some email templates, set a sending schedule and press go. Then sit back and watch as the payments roll in.
Here are five benefits you’re missing out on by not using automated invoice chasing in your business today.
To get your invoices paid promptly and maintain good client relationships, you need to send three to five accounts payable emails per invoice.
1) Email on completion of work with invoice attached.
2) Reminder email sent seven days before an invoice is due.
3) Reminder email sent on the day the invoice is due.
4) Reminder email sent three days after invoice is due.
5) Thank you email on receipt of payment.
That’s a lot of emails!
Writing and sending these emails to every customer in your debtor book can take a big chunk out of your day. In fact, most business owners spend over seven hours a week chasing invoices.
By automating the process, you’ll get that time back. What could you achieve with an extra seven hours a week?
Debtor days (or days sales outstanding) are a measurement of the time it takes for your customers to pay you. Having a high debtor days average will negatively affect your cash flow, meaning your business has less cash reserves.
Businesses who use automated payment reminders significantly reduce their debtor days. That’s because by automating your accounts payable process, you’re guaranteed to follow best-practice invoice chasing habits every time.
One Satago client managed to reduce their debtor days from 144 to under 40 just one month after switching on payment reminders. And their cash balance went up by £25,000.
Chasing customers for payment can feel awkward. A lot of people worry about the effect it has on their customer relationships. But it needn’t be this way.
Often invoices are paid late because of simple admin issues, such as:
By automating your payment reminders, you can iron out these issues before they become a problem. Making life easier for you and your clients. Good client relationships mean more work in the future.
Late fees are an effective way of getting your invoices paid on time. But it’s difficult to keep track of how much you should charge.
Late fees are calculated in line with statutory interest rates. They’re also cumulative. So, each time you send a new payment reminder, you need to calculate how much extra your client owes. Automating this process will make your life a lot easier.
With Satago’s automated payment reminders, you can add late fees to your emails at the touch of a button. Satago will calculate the cumulative fees for you and include them in your automated emails.
You didn’t go into business to spend hours worrying about late payments. And yet, it’s late payments that keep you awake at night.
By automating your accounts payable process, you’ll save yourself a lot of worry. Leaving you with more energy to spend on the parts of your job that you love.
Sign up for a free Satago trial and see how much your business can benefit from automated payment reminders today.