New business payment mistakes could be harming your new venture. Read on to learn how to avoid costly errors.
If you’re running a small business for the first time, it can be surprising how many barriers can get in the way of getting the money that you’re owed. Here, we’re going to look at some of the common mistakes made by new business owners getting between them and their money, and what you can do to avoid having to wait too long for your payments.
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Not Having Your Accounting Setup
When you get paid, your money shouldn’t simply go into a bank account somewhere to be forgotten. It’s important to treat this income not as a big pile of cash that grows over time, but as part of your business cash flow. Accounting software can help you better track how you’re making money, identify trends that you can capitalize on, not to mention barriers to address. Most importantly, it helps you balance your books, making sure that you’re able to see both income and expenses, and to make changes as that balance dictates.
Set Up Payment Systems Early
As soon as you’re welcoming customers and clients, make sure that you have the means to take their money. Cash-only businesses are going to run into trouble and have to turn away customers to figure out how you take payments early. Reliable small business payment machines like those from Yetipay can help you take payments from most cards. However, more businesses, including those that deal with transactions in person, are also setting up online merchant accounts, like PayPal, as well, so that they’re able to accept digital payments as they get increasingly common in all industries.
Don’t Wait Around For Invoices
If you take invoices, then do not make the mistake of leaving the ball in the hands of those who pay. While many, even most, of your clients are customers are likely to pay promptly, there are those who will forget and avoid. As such, you should set up an invoicing system that includes reminders and steps to get in contact when you’re owed money, including payment deadlines and late fees to incentivize people to pay on time. Some clients are going to require you to chase them down, so having a system in place to organize or even automate it can save you some stress.
Don’t Forget About Processing Fees
All too often, businesses miscalculate how much, exactly, they’re getting for every transaction. The most common cause of this is processing and transaction fees that come with pretty much every payment platform. Know exactly what fees you’re signing up for when you take on a new point of sales system or an online payment platform. These fees do add up and while that doesn’t make it any less worth setting up the right payment options, it’s something you should include in your accounts.
Sometimes, payment problems are an issue that starts with clients, but often, they begin with businesses not providing the right ways to pay. Follow the tips above and make sure that you’re removing any roadblocks for the money that’s meant to be coming your way.
