If so, you are not alone, and the solution is not always easy. According to a recent article on the website, CPA Practice Advisor, 1 in 10 invoices fail to be paid on time. The article features commentary from Nancy Harris, Executive Vice President and Managing Director of Sage North America:
“Late payments create unnecessary financial stress, especially for Small & Medium Businesses that depend on these funds to maintain day-to-day operations, pay staff and suppliers, and support future growth,” said Nancy Harris, Executive Vice President and Managing Director of Sage North America. “Our survey reveals that 13% of invoice payments to these organizations in the United States are paid late, and a proportion of those invoices – 10% – are written off as bad debt. With most respondents citing not wanting to chase payments to protect the client relationship coupled with a high percentage of those actually making the payments not able to explain why the payment was late in the first place, is a clear indicator of the proactive role businesses must take to ensure invoices are paid on time. It is clear the stigma around late payments and keeping a healthy client relationship needs to change, so small businesses can get on with doing what they love – running their business – rather than worrying about when the money will come in.” Read more….
While there may be no easy answer, there are things you can do to increase the chances of on time payments. There are some great links in this article as well so get a cup of coffee, or whatever your poison, and read a bit. Happy Collecting!