Architects often have many things coming up in their directions. But at the end of the day, what matters the most is that you get your payments on time. And that is where the majority of the architects struggle as they face a tough time getting their clients to pay.
With so many options, such as digital banking for architects, you can manage all your payments by using some tips. These tips make it easier for architects to retrieve money from the clients. So, to help you out, we will discuss a few of them in this article.
1. Leverage Technology
If you are not taking advantage of technology in this modern era, which is dominated by it, you are making a big mistake. Relying on the traditional modes of payment will become a hurdle for you to get your money. Even clients will find it difficult to process your payment.
Therefore, it is vital to use digital banking for architects and other reliable options. It can help you get your payments from your clients without going through a lot of hassle. In addition, many new digital solutions allow you to receive money from clients conveniently.
Moreover, you can also use technology to keep track of all the payments. There can be a situation where you don't know how much to take from which client. So, it will be a wise decision to maintain a record for every client's account. A simple mobile application will be enough to keep check and balance.
In a nutshell, an online payment solution boosts cash flow by removing conventional hurdles to payment acceptance. It is a vital aspect for architects, as a consistent cash flow is critical for an architectural business to run its operations efficiently.
2. Go Through Your Contracts
One of the most common mistakes architects make is not reading the contract properly before signing it. They consider it the same as when signing and agreeing to terms and conditions for software online. As a result, it leads to many problems for them in the future.
Before signing any contract, you must be fully aware of all the contents in it. In particular, you need to go through the section for the payment schedule so you are aware of how you will be receiving your money. If there is anything you feel that is not right about the clause, discuss it with your clients immediately.
Furthermore, discussing your contract will help you narrow down your client's expectations. You will know what the clients expect from you and how you can achieve that goal. Anything that does not fall into your services or requires any additional charges can be discussed there and then.
3. Charge Customers for Late Payments
An effective tip for architects to get their payments on time is charging customers for not paying on time. You can add a clause in the contract for clients to pay an additional charge if they miss any payment. Many times clients delay payments because they are not under any pressure.
They tend to delay and linger on the payment to architects with useless excuses. But by charming them for late payment, you can send a message that you won't tolerate their behavior. Also, you must enforce late surcharge for your payments strictly.
However, you can give a little bit of leniency for once to the client if they have a genuine issue. Apart from that, you need to have a strict policy regarding late payment charges to ensure that you receive the money on time from your client.
4. Send your Invoices on Time
Another tip to help you get your payments from clients quickly is sending them invoices upon the completion of work. A delay in sending invoices means a delay in getting your payments. Clients can use it as an excuse and come up with reasons for not sending you money on time.
You can put aside everything else to focus on sending the invoices to your clients. Also, make sure to follow up with your clients to know the status of your payments after you send an invoice.
You can always hire a bookkeeper or accountant to manage your books. And if you want to save the cost of hiring an accountant, you can also use technology, as we have mentioned earlier.
Online tools can play an important role here, where you can manage your workflow with the payment schedule. When you start a new project, you may even manage your invoices by establishing future invoices, billing criteria, and periodicity with the help of different software.
5. Add Complete Information in your Invoices
It is common for architects to miss out on vital information on their invoices which leaves their clients confused. Clients are not sure about the address or the date they have to pay. All of this confusion in the invoice leads to a delay in your payments.
Therefore, you need to make a clear and concise invoice that has all the necessary information that the clients need. Here are a few things you need to include:
- Company name, number, address and your name
- Client's name, address, contact details, and other relevant information
- Invoice number
- The amount that the clients must pay
- Late charges for the delay in payment
- The due date for the payment
- In case you have a billing schedule, then include the payments left
In addition, you can add any other relevant information you feel is necessary for the client to help understand the invoice.
We hope you now understand the right ways to streamline your payment process. These tips will help you in getting your payment from your clients on time. Architects need to have a steady cash flow to run their operations.
A delay in payment can disrupt their entire business operations. Therefore, you can use the strategies to speed up digital transformation for your business and receive payments on time without going through a lot of hectic.
Sign up to our newsletter