5 Tips for Improving your AR Collections

You’re sending out invoices, but that doesn’t mean as much when the bills go unpaid. What makes matters even more difficult is that when you run a smaller practice, you don’t have time to chase clients down for payment. Even if you did, it’s hard to do so without risking the relationship.

The answer is to develop an effective accounts receivable process. This article provides tips for encouraging clients to pay while minimizing the time you have to spend on collecting late payments.

Send Electronic Invoices

The sooner your clients receive your invoices, the more likely they are to pay on time. Remember that paper invoices aren’t ideal in today’s digital world: they can get lost in the mail and cause frustration when clients receive them months after the work has been completed.

Streamline the billing process by using a system that lets you create an invoice in seconds. The best solutions automatically track the time you spend on each case and generate an invoice for approval before sending. After that, you can send it straight to the client’s inbox without having to wait for USPS. 

Provide Different Payment Options

Consumers today are used to having different payment options for their purchases. This is especially true for larger-ticket purchases. For example, if you buy a new dining room set or home theater, the store will likely offer you a payment plan to make the purchase more manageable.

This strategy works for professional services too. If you offer the option of breaking payments down into smaller installments, your clients are more likely to pay their bills on time and you spend less time chasing them, which is a big win.

Choose an AR system that offers different payment options, from credit cards and PayPal to installment plans and eCheck. Select a system that follows IOLTA rules for trust-related transactions and uses advanced security measures.

Make Payment a Breeze

Allow clients to pay instantly with click-to-pay links or QR codes. Most payment portals will generate links you can copy into client emails or add to the firm’s website. All the client has to do is click on the link or scan the code and they’ll be taken to a form where they can enter payment details. Done!

Automate Follow-Up

As a business owner, your time is wasted when you have to chase overdue payments. A payment system with an automatic bill reminder feature can help you track outstanding invoices and issue reminders based on a schedule. This way, your AR collection becomes an effective and efficient process instead of a constant distraction.

What’s the Bottom Line?

By taking a few simple steps, your firm can reduce the time it spends chasing late payments and make life easier for its clients. Electronic invoices, flexible payment methods, online payment services, and click-to-pay links or QR codes can transform your firm’s AR collections management and let you spend more time making money instead of chasing it.

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