Don't Get Ghosted! 5 Pro Tips for Paying Your Vendors On Time So They Keep Answering Your CallsAug 28, 2023
Let's face it, running a business is tough work. There are so many things to think about and keep on top of, and one of the most important things to remember is paying your vendors on time. If you don't keep up with your payments, not only is it bad for business, but you'll also start to get ghosted by your vendors - and that's the last thing you want. But don't worry, we've got you covered with our 5 pro tips for paying your vendors on time and keeping them happy. So, grab a cup of coffee, sit back, and let's get to it!
1. Get organized!
With Quickbooks, you can use it as your CRM for vendors, just like you use a CRM for your customers. Make sure all your vendor information is in your Quickbooks account, including their full name, address, emails, phones, and payment terms. Remember to add EVERY invoice into QBO, so you can easily run AP aging reports and stay on top of what's due and when. No more late fees for you!
*another pro-tip: Have ONE inbox for vendor invoices ONLY (nothing else...really don't send marketing emails there it gets messy). it can be [email protected] or [email protected] or a fun name that matches your brand. This way invoices don't get lost in your endless inbox.
2. Have ONE day per week for dedicated vendor payment processing and don't skip it!
Make a date with yourself every week to pay those bills! Mark it on your calendar and set a reminder so you don't forget. Don't procrastinate on this important task. And don't forget to schedule payments for all those bills due before your next "money date." Trust us, your bank account will thank you!
3. Prioritize your payments:
If you're struggling to pay all your vendors at once, prioritize your payments. Make sure you pay your most important vendors first, such as those who provide essential services or materials. This way, you'll keep your business running smoothly, and you'll avoid any negative consequences from not paying on time.
If you're struggling to make a payment on time, the worst thing you can do is ignore your vendors. Instead, be honest and communicate with them. Let them know that you're having trouble and ask if you can work out a payment plan or a new due date. Most vendors will appreciate your honesty and will be willing to work with you. Making small payments to many vendors may keep the good will going with multiple vendors and preserve important relationships in times of a cash flow crunch.
*Pro-tip: Don't get in a cash flow crunch. Check out our blog post The Cash Flow Conundrum: What's the big deal with cash flow in business? for more info.
5. Automate your payments:
One of the easiest ways to ensure that your payments are made on time is to automate them. This means setting up automatic payments with your bank or using accounting software that offers this feature. This way, you'll never miss a payment, and your vendors will always be paid on time.
We love Melio, Bill.com & Quickbooks Pay. Any other suggestions? Comment below.
Paying your vendors on time is crucial for maintaining good relationships and keeping your business running smoothly. By getting organized, setting reminders, prioritizing your payments, communicating, and automating your payments, you can avoid getting ghosted by your vendors. So, implement these tips today, and watch your business thrive!
Hey, you! Yes, you with the awesome business and the passion to make it big! Are you tired of trying to juggle finances and crunch numbers all by yourself? We totally get it - that's why we're here to help!
With our fractional CFO services, Bookkeeping and/or SOP Building packages! With our help, you'll have a team of financial experts at your fingertips, ready to take on all the financial tasks that come with running a successful business. From cash flow management to budgeting and forecasting, we've got you covered.
Our team of skilled professionals have years of experience in providing top-notch financial services to businesses of all sizes. And with our fractional CFO services, you'll get all the benefits of having a full-time CFO, without the cost.
So what are you waiting for? Take your business to the next level and contact us today! We promise, it'll be a decision you won't regret. Plus, our team is pretty amazing - if we do say so ourselves.
Stay connected with news and updates!
Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.
We hate SPAM. We will never sell your information, for any reason.