How to make invoice payments on time
Late invoice payments can damage the cash flow of businesses and make it difficult for them to operate effectively, which is why it’s so important that businesses of every size take responsibility to pay their invoices on time.
Here are some simple steps you can take to pay your suppliers’ invoices promptly:
Review invoices as soon as you receive them
Reviewing invoices as soon as they’re received will make sure they don’t get forgotten or misplaced. You should pay close attention to the payment due date and ensure the total cost aligns with the conversations you’ve had with the supplier.
Set payment reminders to avoid late fees
You can easily create payment reminders with QuickBooks’ automated invoicing system to make sure the invoices you receive are paid on time. That will help you to avoid late payment interest charges and fees.
Choose the right payment method
The payment methods accepted by the supplier should be listed on the invoice. You should choose the most convenient payment method for you based on your current circumstances. For example, if cash flow is low, paying by credit card might be the best option. Or if the supplier is invoicing you regularly then options for recurring invoices like Direct Debit might save you both a good amount of time.
Automate invoice payments
If you need to pay a supplier on a regular basis, you can set up an automatic recurring payment with QuickBooks to ensure the payment is made before the deadline.
Make the most of early payment discounts
Some suppliers offer a discount on the total cost of an invoice if you pay within a certain timeframe. Taking advantage of those discounts when you can, will help to improve your profit margins over the longer term.