Cash Flow and Customer Payments

 Email Article  

Tweet  

  

A Direct Relationship

I found an interesting quote today in the business section of the Charlotte Observer about "cash being king" and that the current economic climate is rendering cash flow fashionable again.  Really?

Truth is a lack of cash flow is one of the predominant reasons behind business failure (i.e. just look at our auto industry).  As experts in the payment industry, we're here to tell you that cash flow management is - well - more than just fashionable or trendy - in fact - it's high on the list of processes that demand best business practices .  Joseph Anthony and the microsoft small business resource list 7 ways to improve cash flow - it's no irony that the top 3 revolve around customer payment.  

Cost Effective Solutions

XBS PaySimple which combines electronic invoicing with ACH or direct debit and credit card payments is one tool that provides an easy to use vendor/customer interface that provides a strategic method for invoice tracking and payment collection at little cost.  Think about it - send a custom invoice (recurring even - same time every month!) via email and your customer just clicks and pays OR draft the customers checking account and send the copy of the email invoice same day. 

A well managed invoice process improves financial operations and streamlines the order to pay cycle.  That's a big enough benefit, but consider the rest -

· Reduced labor and processing costs - no more staff to print, stuff, and mail invoices...and statements.

· Ease and flexibility to offer installment sales and discount terms for quick payment.

· No more postage (up to 44 cents in May - almost $1 a customer/mo. for an invoice and statement).

· Lower printing costs - envelopes, invoices, return envelopes ... 

· Fewer payment delays - streamlined billing speeds collections...are you pushing 60? 90 days?

· No more lost invoices or worse, lost checks.

· Easy reporting and tracking capabilities.

Small Investment - Big Returns

We're surprised every day by the casual approach businesses take to their customer payment practices and solutions.  Contractors, child care providers, pest control businesses, utility companies...the list is endless - biggest objection - price.   Scary.  With PaySimple as an example - a leading SAAS solution can be implemented for less than $350/yr - my window washer charges that for a single job and he really needs a billing system.

Investing in a service that can markedly help you track and increase your overall cash flow is imperative to the health and success of your business.  Check out the XBS PaySimple Demo and if you care about your business (and your customers), by all means do your research, and then DO something about it.