Business owners often struggle with improving their cash flow. If collection issues aren't addressed, it's very likely to see a decline in business and the quality of service provided to customers will suffer.

Here are a few tips and hints on being in business and how to collect your money for the work that you've done.

1.) INVOICE QUICKLY:  If you're doing work for clients, the first thing is to try and get the invoice out as soon as possible. Seven days is long time to wait because otherwise, people have forgotten that you've done the work.

2.) SEND STATEMENTS: Make sure you send out statements so they are aware they haven't paid you. Some people tend to wait for their statements before payment. Send out statements, so if you get to the end of the month and your statements have gone out on time, people will know they haven't paid you. Xero has the capacity to send statements instantly and provide a detailed breakdown of the amounts due. This can help you to identify if there is an issue with their payment and also give them more information about what they owe.

3.)  UPFRONT DEPOSIT: To get your money into your business faster, it's acceptable to request a deposit upfront. There are some people who are worried about paying a deposit upfront, but if you're doing work for someone who's happy with your services, it shouldn't be a problem.

4.) CHECK IF THEY HAVE RECEIVED IT: Ask if they have received the copy of the invoice and give an option for debt collection if they haven't. If you have sent an invoice and they haven't paid, it's okay to give them a call and ask if they've received it.

5.) PAYMENT PLAN: If they are struggling with the debt, offer them a payment plan and explain that this is the best way for them to pay off their debt. If you're working with someone who has financial issues, it's okay to ask if they have a payment plan. In most cases, people will be willing to work out a payment plan as long as it's reasonable and won't cause them more stress than necessary.

6.) GET HELP: Get a professional debt collector to help recover the debt. If you've tried all of the above and still can't get your money, then it's time to get a professional debt collector involved. Debt collectors are experienced in this area and will be able to offer advice on how to proceed with recovering the money owed.

7.) ITS YOUR MONEY:  Don't feel bad following up invoices.  If you have sent an invoice then it is your money, you have earned it, and you have the right to ask for it.

Debt from your clients can really affect your business and can make it difficult for you to stay afloat or budget appropriately. Therefore, it's important that you're able to get your money as soon as possible so that you don't end up in financial difficulty yourself.

We love to talk about money you love to talk about debt collections. Have questions? Book an appointment with us!

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