Running a small business is not an easy task. You have to make sure that you have clients, which means marketing yourself and networking to your best ability. Then, you must deliver on all the projects and tasks that clients have ordered (and we know that sometimes they can ask for a do-over or a change of order). Between that and coordinating with the vendors, you do not have a lot of time at the end of your day to deal with anything else. If you do, isn’t it better to spend it with friends and family? It is difficult for many of us to ask for and receive help, especially with small tasks that don’t seem complicated at first sight. Accounts Receivable or AR or “Collections” as many call it are a headache for many Self-Employed and Small and Medium Businesses (SMB). Even the best of customers sometimes forget to pay you on time or do not have comfortable options to do so. Some customers are not the best, and that is OK too as long as you get paid for the work you have delivered. The more customers you have, the better, but it also means that you have to spend more time “reminding” them about payments that are due to you. These conversations aren’t always comfortable and are time-consuming. Even if you pay yourself or an employee of yours a minimum wage (I’ll use $10/hr for the simplicity of example, but you welcome to use whatever is applicable to your needs) and getting on the phone or sending a couple of emails a day, you spend at least half an hour per day on average on the task of chasing payments / collecting from your clients.
At this rate you are looking at: $10 X 0.5hrs X 5 days a week X 4.2 weeks per month on average = $105 or $1,260 per year cost just to send a few emails. That, if you never forget to chase your customers. If you do and some invoices are forgotten about and never paid, imagine how much money would it cost to you? Let’s say your business has a $250K yearly turnover (this is not take home income), and you forgot about 5% of the invoices? that’s another $12,500 right there (that are hurting your take home money).
This is a huge amount for a small business owner and can decrease your take home money or a profitability of your firm. Luckily, these days there are plenty of solutions helping you to free some time up and get more work done (which always translates to higher productivity). Once synced to your QuickBooks (or any other accounting software) account, these tools will send the email for you, never forgetting about any of the invoices and will cost a fraction of the money you’d be leaving on the table. For example, Gaviti has a plans starting at less than $50/month (you can save 20% by subscribing for a year). Would you prefer paying less than $500 a year or almost $15K? The answer is obvious. Not having AR Automation costs you a lot of money.