Construction cash flow is so important in business.
In your construction trades business, you have got to keep the cash flowing! This means collecting customer payments as soon as possible. How would you like your customers to be able to pay right after you complete a job or email them an invoice? Here are five tips for great construction cash flow. Get paid faster and track customer payments using QuickBooks Online.
- Invoice for completed work right away
Always invoice a completed job as soon as possible. The longer you wait to invoice customers the harder it is to get paid. Invoice your customers as soon as the work is completed. Your customer will likely pay you faster if you are ready to take their credit or debit card when you ask them for payment. When the job is complete, review your work with them and then offer to swipe their credit card to settle up. Have your employees or subs do the same. Make it easy for you as well as your customer.
- Email invoices to customers
With QuickBooks Online, you can email invoices to customers quickly. Create the invoice and then preview it before you send it to ensure that it looks exactly the way you want. You can create a professional-looking invoice and email it to your customer straight from Quickbooks Online in less time than it takes you to create an invoice from a Word doc and save it as a PDF.
- Monitor who owes you money with QuickBooks Online
QuickBooks Online helps you keep track of invoices and payments. It will show you
- Invoices that have been emailed to customers
- Whether a customer has viewed an invoice
- Invoice payments a customer has paid online
In Quickbooks Online, you can see whether a customer has viewed the invoice or not. If they have not looked at it, you can always place a phone call to verify the email address. Better communication with your customers always results in better customer satisfaction.
- Get customer payments in advance with QuickBooks Online
Collecting an initial payment is ideal if you do large construction jobs for your customers that require a deposit upfront. Send them an invoice for the initial deposit, and you can begin ordering materials when they make the payment. Quickbooks Online will notify you when payments are received. When the job is complete, you deduct the initial deposit from the invoice and collect the final payment.
- Give your customers multiple methods of paying you
Accepting cash and checks can negatively affect your construction cash flow and require a trip to the bank. QuickBooks Online offers services that allow you to:
- Email invoices with a payment link and get paid online
- Accept credit and debit cards on-site when the job is complete
- Make sales using your tablet or smartphone, then accept payment
- Set up your subs or employees to take payment on your behalf using Quickbooks Payments
Use Quickbooks Online and Quickbooks Payments to run your construction trade business like a pro! Try these tips and improve your construction cash flow. If you would like us to help you, contact us at Working Numbers. We work with business owners in the construction trades to help them with bookkeeping and business advisory services so they can keep building a successful business. If your construction or trades business needs help – let the experts at Working Numbers get your books organized.