Never chase a payment again: Try these four clever tactics to keep the cash flowing

Running your own business can often feel like a juggling act. With so many balls in the air, chasing after unpaid invoices and payment deadlines can use up time you simply don’t have.

With the current cash flow pressures businesses are facing thanks to inflation, there’s no better time like the present to sort out your payment terms and tactics.

Setting up your business with the right payment systems, from invoicing details to the hardware you’re using on the ground, can make all the difference to your cash flow and budgeting. Whether you run a business where you need to purchase materials upfront or you’re invoicing a number of clients at any one time, delayed payments and unexpected processing fees are a headache you don’t need.

Here are four tips to help you master your payment processes so you’re never left out of pocket.

1. Sort out your payment terms before you need them

When it comes to payment terms, verbal agreements and firm handshakes simply won’t cut it. One of the best ways to ensure a smooth transaction between your clients, customers and contractors is to outline payment deadlines and terms before services or products are sold.

Agreeing on these terms upfront can help protect your business, allowing both you and your clients an opportunity to raise any foreseeable payment issues.

While it may seem like a tedious process for a simple transaction, clear terms and conditions can help protect everyone involved and ensure predictable cash flow. Terms could include payment and credit deadlines, as well as consequences for late or missed payments.

Business.gov.au recommends that your payments terms outline when the payment needs to be made (for example, within 30 days) as well as your accepted payment methods.

Depending on the cash flow needs and structure of your business, you may offer credit to customers when it comes to invoicing. While credit can offer more flexible payment options for your customers, your cash flow can quickly dry up if you haven’t outlined a clear timeline for invoicing.

2. Never miss a payment, anytime, anywhere

No matter the size of your business, it’s important to have the right kind of tools to support payments. No business owner wants to hold up a transaction waiting for a payment to process, so you want a reliable and efficient system in place.

Tyro’s range of payment products, including their recently launched portable EFTPOS reader Tyro Go, are used by more than 66,000 businesses around Australia.

Designed for businesses on the go, Tyro Go is the latest payment solution for businesses looking for a simple EFTPOS solution at an affordable price. Small enough to fit in your pocket, Tyro Go comes with a free Tyro Go App that allows instant transactions on the ground, so you can bring the reader to your customers wherever they might be*.

Being able to offer a number of payment types can help give you that competitive edge with customers or clients. For example, Tyro Go accepts all major credit cards as well as digital wallets Apple Pay, Samsung Pay and Google Pay™.

These kinds of EFTPOS solutions can also give your business that extra professional polish, with options to send digital receipts with your business branding and access to day-to-day cash flow and expense tracking.

3. Keep up-to-date records

When you’re managing every operational and financial aspect of your business, keeping track of your business’ performance is the best way to make informed decisions about budgeting, expenses and expansion.

According to the Australian Tax Office (ATO), keeping a cash flow budget or projection is a key way to ensure you know your cash position at any time. This can help you understand your expected income and costs, identify any potential shortages, and plan for expenses and tax payments. It’s not meant to be a ‘set and forget’ thing – you can choose to work out the budget on a monthly, quarterly or yearly basis.

Whether you are in charge of your business finances, or are looking to start a new venture, the ATO has a handy record keeping evaluation tool to get you started. This tool is a fast and free way to quickly evaluate your business’ current financial health, giving insight into what decisions need to be made to boost growth and profitability.

4. Move your invoicing online

Despite the shift to online systems, devices and shopfronts, some businesses still find it hard to part ways with old-school paper invoicing.

eInvoicing is fast becoming the new standardised method of exchanging invoices across microbusinesses. Shifting invoicing to the online space simplifies transactions between suppliers and buyers across the board, considerably speeding up the payment process. In some eInvoicing systems, you can even get same-day settlements, so the cash goes straight into your bank account during business hours.

With so many financial benefits to eInvoicing, it is fast becoming a simple way to reduce administrative costs and minimise your business’s environmental impact. The paperless paper trail that follows online invoicing can ensure all transactions, payments and credits are traceable.

Above all, invoicing your customers online is reliable and secure, minimising the chance of human error and the ever-increasing risk of invoice fraud, so you can focus on other aspects of your business.

To find out more about Tyro Go, visit their website.

This article is brought to you by Flying Solo in partnership with Tyro.

* Tyro Go EFTPOS reader requires a Bluetooth-enabled mobile device or tablet, the Tyro Go App to be installed, and mobile network coverage. Check Google Play and App Store for the latest OS compatibility requirements.

Apple Pay is a trademark of Apple Inc., registered in the U.S. and other countries.

Google Pay is a trademark of Google LLC.