Biller Genie Blog

Manage Profit by Reducing Unpaid Invoices and Managing Cash Flow

Apr 10, 2021

Technology has advanced at a rapid rate. It’s now able to link almost every application together. Despite this, the vast majority of businesses are still depending on spreadsheets and ball-point pens with highlighters to manage their accounts receivables (A/R). The only way to manage your profit is to understand our cash flow by controlling how and when invoices get paid, as much as you can. 

A company needs positive cash flow to generate profits, pay employees and suppliers so they can keep their business running smoothly and grow it. But where there’s an opportunity, there are almost always challenges. Lack of money—cash flow—caused by unpaid and overdue invoices is the overdue invoices are the problem and A/R platforms are the solution.

Past due balances bottleneck and restrict much-needed capital. 82% of businesses fail because of lack of cash flow, not because of a lack of profitability, so it’s essential to know how to fix the problem before it starts. Automating the A/R process is key to managing profit.

Stay on Top of Unpaid Invoices & Know Your Cash Flow

Keep abreast as to what your cash flow looks like coming in and what money is going out. That’s how you’ll take control of your finances. Dealing with unpaid invoices is just the tip of the iceberg. There’s a lot more to it than that. 

Reduce Outstanding Invoices.

Reduce outstanding invoices with these suggestions below. You can find more on our website.

Use customer portals.

Reduce unpaid invoices by using customer portals.  Make them available so paying invoices becomes immeasurably easier. When the invoice reminder comes in the form of an email, it’s simple to pay from within a secure customer portal. Biller Genie’s Customer Portal offers customers the ability to make secure payments, store payment methods, request payment plans, update their payment information, set up ACH, view payment history, and more. 

Add late fees.

Adding late fees encourages positive payment behavior. You can do this from within Biller Genie. Charging late fees ensures business customers understand that business owners take collections seriously. When a product or service is bought or rendered, there’s an expectation of prompt payment, but we all know that’s not always the way things go.

For those unfortunate, but probably likely, occasions that invoices go unpaid, late fees give a little extra nudge to help motivate on-time payment. What’s better: adding a small late fee or finding yourself in small claims court? Solve the problem before there is a problem.

27.5% of businesses who frequently received late payments from their clients often missed their own payment deadlines (PYMNTS report). No one can pay their own vendors without cash flow from on-time payments. If the business incurs a late fee or penalty of its own, the business is responsible for the expenses. Yucky. We’d like to help you avoid that.  

Turn on payment plans.

Remember, the entire customer journey is a part of what makes a great customer experience. Payment plans, offered if the customer requests them or if you decide to suggest and offer them, are a great way to show them that you want to not only retain them as your customer but also that you’re empathetic to their needs. Payment plans are a wise choice and are a feature of Biller Genie. 

Also, make sure payment terms are in line with your customers. 

Communicate the security and ease of online payments.

Payment information is never stored on our servers and all transactions are tokenized and encrypted so business’ customers know that their information is safe and secure. It’s another way to incentivize quick payments.

Improve Cash Flow

If you’ve read this far, you might have cash flow problems or someone that does. The solution? Change and understand how cash flow impacts profits. Choosing a platform that automates the entire A/R process, such as Biller Genie, will get you back in the green. 

 

Cash flow problems are more than a nuisance. They’re a nightmare for growing businesses, especially those just starting out. Cash flow is improved when invoices are paid in a timely manner. There are things businesses can do to create positive momentum and get back control of their cash flow.

 

Invoice Style Options

Accept contactless payment methods and enable simple, one-click invoice payments.

Know that the payment methods you accept are the ones your customers want. With COVID-19, the way customers interact with businesses has changed. Companies that accept online payments are now more attractive. Biller Genie allows for payment using a credit card, ACH, or Apple Pay. Getting invoices paid gets a lot simpler when it only requires a simple click of a button or tap of a finger on a personalized, automated email. 

Automate invoice follow-ups.

You don’t always have to frantically chase unpaid invoices. After all, you’re not a collection agency. Small business owners can use automated messaging, like that provided by Biller Genie, to collect on unpaid invoices, ensure prompt payment, and help cash flow.

Understand cash flow.

Understanding cash flow is essential to making sure unpaid invoices get paid. Small business owners and large business owners must understand how cash flow works, completely. Seasoned entrepreneurs Lil Roberts, Founder & CEO of Xendoo, and Tom Aronica, Founder & CEO of Biller Genie, know about cash. Both their businesses are in the cash business, Fintech, and accounting, specifically. Here’s how you manage cash flow, according to two startup founders.

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    Biller Genie is an automated A/R and e-invoicing platform.

    Automated accounts receivable (A/R) and e-invoicing systems are simply software that can send invoices automatically without a human having to take part in the process. It’s a huge part of what Biller Genie does, which is what makes The Genie an overall solution to help your entire A/R process. Biller Genie really is an all-in-one solution. As a business owner, this can provide time-saving benefits that can allow you to pursue higher grossing activities, which can allow you to further grow your business. Learn more about what exactly automated A/R is. 

    Biller Genie

    Biller Genie’s powerful features allow you to automate your invoice process from bill presentment to payment and reconciliation, with no new software to learn. In other words, Biller Genie’s e-invoicing solution takes care of sending out invoices and other communications while making the payment process smoother than ever.

    Check out our Ultimate Guide to Collecting Unpaid Invoices. Questions? Visit the FAQ section of our website or find an answer in our Knowledge Base.

    How Biller Genie Works

    Biller Genie works like a wish come true for businesses that need relief from all of the headaches involved with the A/R process. The below infographic illustrates how Biller Genie’s magic works to reduce unpaid invoices and improve cash flow.

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    Don’t stress.

    When it comes to getting invoices paid when payment is due, each time an invoice comes due time is of the essence. If a business owner is stuck on the phone calling half a dozen late-paying customers, where is the time they need to do the more important work of actually running their business? Invoices can get paid with diligence, excellent customer relationships, reminders, and more, but the problem is that people can’t be all of those things at once and still grow a successful venture.

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    The solution, then, is an automated A/R platform that provides not only an e-invoicing solution, but also easy ways for customers to pay their bills, update payment methods, and more. Biller Genie is the one solution that does all of this and more, and it all happens as if by magic. Whether or not Biller Genie is really magic is a secret. After you’ve tried it, you might just think it is. Our consistent five-star reviews make us very happy, but we get even more excited when we hear how much cash flow comes in when Biller Genie is turned on. Free business owners and their customers from stress and worry with a solution that works. You’ve got this. Sign up today.

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