info@remaccounting.com.au
  • (03) 8797 5399
  • Recent News – REM Accounting
    • Home
    • Our Difference
    • Services
      • Accounting & Tax
      • Self-Managed Superannuation Funds
      • Business Advisory
      • CFO Advisory
    • Resources
      • Recent News
      • Useful Links
    • Contact Us

    How to avoid non-paying clients

    By admin • 18 November 2019 • Business

    Running a business is hard enough without having to chase up payments from your customers. Here are some measures you can take to prevent yourself from having to deal with the profitability imbalance, negative client relation, and legal ordeals that come with chasing up owed debt.

    Research the customer:
    Before you enter into an agreement with a client or other businesses, make sure that you know who you’re dealing with and do some research. There are government certified websites available to check whether a company is registered and legitimate. Find out about their history, make sure they are reliable, still in operation and to look for any bad reviews and other people’s experiences with them. Look out for those who ask for discounts or complain that your fees are too high. If you get the idea that the client may not pay, consider avoiding the job instead.

    Have a signed contract:
    Regardless of how much you trust your client, it is still a good idea to have a written contract in place so that everyone is on the same page and you have evidence to refer to in the case of a dispute or confusion. The contract should consist of the terms and agreements, payment schedule, preferred payment method, the exact product or service to be completed and late payment policy. This will encourage your client to make their payments on time, and will also come in handy if any legal action is required in the event that payment isn’t made.

    Have a good invoicing system:
    Make sure that you invoice customers quickly with professional and easy to understand statements. This helps you keep track of your customers and helps your customers understand the payment requirements. You can set payment terms and policies to ensure that you will be paid how you and your customer agreed.

    Ask for deposits or instalment fees:
    If you ask for a deposit and the client does not want to pay, it shows that they are probably not trustworthy and may not be willing to make a full payment. If the client does pay you a deposit or instalment fees but does not make a final payment, then you will not have wasted as much time and effort on this work than you would have otherwise.

    Tweet
    0
    Proactive consolidation with ILBAs
    Strategies to increase profit

    About the Author

    admin

    You Might Also Like

    • Responding to difficult employees

      Responding to difficult employees

    • What you need to do before you buy an existing business

      What you need to do before you buy an existing business

    • The management styles you should stay away from

      The management styles you should stay away from

    • The sudden lockdown in Victoria might have cost the economy a lot of money

      The sudden lockdown in Victoria might have cost the economy a lot of money

    No Comments

      Leave a Reply Cancel Reply

      You must be logged in to post a comment.

      Recent Posts

      • Responding to difficult employees
      • Things that you should not include in a will
      • The pre-mixed investment options that are available to you
      • What salary packaging can involve
      • Spotting unauthorised and mistaken transactions

      Archives

      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018

      Categories

      • Business
      • Legal
      • Money
      • People
      • Super
      • Tax
      • Web

      RECENT COMMENTS

        Subscribe & Follow

        Subscribe to our newsletter and keep up to date with the latest news from REM Accounting & Advisory

        REM accounting logo
        • Accounting & Tax
        • Self-Managed Superannuation Funds
        • Business Advisory
        • CFO Advisory

        Association LogoAssociation Logo
        Copyright © 2018 REM Accounting and Advisory | Privacy Policy

        Liability limited by a scheme approved under Professional Standards Legislation