Automated Billing: Reasons to use Payment Reminders During Fee Collection
Having to do what you love for a job can be extremely rewarding, especially when you have built strong, trusted relationships with your customers. However, in order to attain long-term success, you will need to understand how to deal with the most difficult aspects of running a business — late payments.
Late payments have been a growing source of concern for companies all around the world. Before the onset of the COVID-19 pandemic, one out of every five firms said late payments were a bigger problem than the previous year. Six out of nine industries, including banking and finance, claimed it was becoming a bigger problem, with 24% of payments arriving late.
Invoices that are past due can harm cash flow. Cash flow problems cause 82% of firms to fail. However, with automated payment reminders in place, outstanding balances are reduced by 40%, and payments are received up to 15 days sooner.
Additionally, there exists a very real cost of having to devote time and effort to tracking down unpaid invoices, time and effort that you could have spent on things that would help your business grow and expand.
Fortunately, a solution to this fee collection issue exists in the form of automated payment reminders.
Automated Payment Reminders
Automated Payment Reminders are just that: payment reminders sent via email, physical mail, or other means to alert a client or business to an upcoming or due fee collection.
In this regard, swool.io, a management system designed to reduce the pressures of running a business, might be the best of the numerous options that provide this capability.
Swool.io has an Automatic Billing feature that bills and sends invoices automatically on behalf of users’ businesses. Users can establish three separate payment reminder dates, which will escalate through email to notify their consumers that they have not paid, resulting in funds being collected more efficiently and with less work on the part of the users.
Benefits of Automated Payment Reminders
The following are the key benefits that Automated Payment Reminders offer in fee collection.
• Reduce Labor Costs
The procedure of invoicing takes time. Furthermore, the majority of business owners are not accountants. 60% of small business owners say they are not highly knowledgeable about accounting and finance.
By automating payment reminders, you can save time on administrative tasks and hence, lower labor costs.
• Extra Revenue via Late Fees
The option to add late fees is a lesser-known benefit of automatic payment reminders.
Late fees, while not ideal, are a unique method to generate extra income. You can include your payment terms and conditions in your correspondence with automated payment reminders so that customers are aware. Moreover, late fee collection penalties can have the added benefit of encouraging good payment habits.
• Save More Time
Automated payment reminders save you time that may get better spent on higher-value tasks. Manually sending payment reminders is time-consuming; why waste precious time when you can automate fee collection with today’s technology?
Conclusion
swool.io is a management software solution that automates accounts receivable from bill presentation through follow-up and collection – without requiring you to change your current processes drastically.
Swool.io can also integrate with Paypal and Sage, making your payment and billing processes even simpler.
Truly, doing what you enjoy for a living can be extremely rewarding. With Swool.io, you can protect what you love. Concentrate on what you do best and leave the administrative tasks to swool.io.