thephotographybiz.com

photo credit: fdecomite

This applies to all business not just photographers and photography businesses. To get paid on time takes cunning, guile and a really keen eye for detail. The aim of the game is not to let your client use any excuse to not pay you. You’d think that after delivering a stellar product on-time and within budget your client would be only too grateful and would pay you as a matter of urgency. You’d be wrong.

Let it be said here that after many years dealing with clients ranging from small businesses to multinationals there are pitfalls to be had with both and most come under the control of those who must be feared. Yes, I’m talking about the <insert jarring chord> Accounts Department. In most companies the Accounts Department are a law unto themselves. Dealing with them is an art form. In larger companies the Accounts Payable Department is the one you must conquer, in smaller companies it’s normally the part-time bookkeeper (who only works on alternate Wednesdays).

Here then. I present my 5 top reasons your clients don’t pay you quickly or on time, or perhaps both:

1. You didn’t make your payment terms or method clear on your invoice.

Your payment terms should be clearly marked on your invoice. They should reflect the payment terms set out in your terms & conditions document that you had agreed before starting the job or supplying the product. If you don’t tell the accounts department clearly what your terms are they won’t know and your invoice will not be given any sort of urgency whatsoever.

Similarly your acceptable payment methods should be clearly noted too. Some companies issue cheques and some pay by bank transfer and some offer both.

Tip: Write “Terms strictly 30 days” or whatever you work to. Write this in bold right underneath the total amount owed.

Tip: Ensure the name your cheque should be made payable to is noted on the invoice as well as your bank account and sort code details

2. You didn’t get a Purchase Order number or have an Invoice Number

Purchase Orders are a way for large companies to control their expenditure and keep track of who is ordering what. It’s becoming quite common for Accounts Departments to not pay invoices unless a Purchase Order number is stated on your invoice that matches the one they issued.

The very minimum you need on your invoice is an invoice number. This aids queries and allows the accounts person to identify your invoice on their system.

Tip: Always ask your contact whether you need a Purchase Order number (PO) before invoicing the job.

Tip: Invoice numbers are down to you – make it up but keep it unique. Think filenames. You wouldn’t have two files with the same file name and number, apply this theory to your invoices.

3. You sent your invoice to your client contact – not the company accounts department.

Your creative contact or the person that commissions you (sometimes the company dogsbody in the case of PR/lower end work) rarely holds the purse strings. This is good because you won’t have to hack them off by chasing them for payment all the time. Its’ bad because if you send your invoice to them they may not pass it onto the Accounts Department. It’s better for your invoice to be awaiting authorisation from your contact after it’s been registered by Accounts.

Tip: Always send your invoice to the for attention of the Accounts Payable Department of the company that owes you the money. If emailing the invoice, get an Accounts Department contact and cc the invoice to your contact not the other way round

4. You’re not in their “system” yet.

First time you work for a multinational it’s likely that they will have to “set you up on the system” in order to be paid. This can take weeks. So make sure it gets done by doing 5. below

Tip: Call after a couple of weeks to ensure you have been set up on their computer system

5. You didn’t chase the progress of the invoice

The worst thing you can do after sending an invoice to a new client is sit back and expect it to be paid on time without further intervention. The probability is that it won’t be paid on time for any of the reasons mentioned above but mainly because you need to be set up on a system and/or they are ignoring your payment terms. I always call after two weeks to ensure everything is progressing smoothly with payment of my invoice. Unsurprisingly a lot can and does go wrong. Some of the more common excuses are:

>>We can’t pay you until our client pays us
>>We only pay at the end of the month following the month we got your invoice
>>We only pay on 60/90/120 days
>>Our terms and conditions apply not yours
>>Your invoice is awaiting authorisation by (your contact)
>>Your invoice is awaiting cheque authorisation / the manager who authorises cheques is on holiday

I’ve heard all these over the years. Some sound plausible and some are deliberate delaying tactics. You need to be on the ball and chase until you get a payment date. Don’t get fobbed off with “shortly or “soon”. Ask for a “date when the invoice will be paid”. Most companies have payment schedules and should (after leaning on them in the nicest possible way) be able to tell you.

Tip: Ring, email, hassle, chase and then do it again in a couple of days if you get no answer or no call backs. As long as your terms of payment have been agreed then they should be adhered to.

Tip: Print your t&c’s on the reverse of the invoice

All you have to do is convince the Accounts Department gatekeeper – who hasn’t got a first clue who you are or what was agreed unless it’s written on the invoice. Be tenacious and be like a dog with a bone – don’t let go but always remember, you’ll catch more flies with honey than vinegar!

Good luck!

PP