Need help with (efficiently) taking payments from customers

[K0608]

Merry Christmas!
I'm hoping to get a bit of advice regarding taking payments from clients, which I currently feel is a fairly laborious and time-consuming process for us. That said, I don't know how I could streamline it, and what the bottom line requirements are.

I should add that we don't really sell 'off-the-shelf' products, all of our services require a bit of dialogue with the client first so that we can make sure we're offering the right thing. That said, our pricing structure is pretty simple and standardised. Our website and what we offer can be found here: www.WestCoast-MountainGuides.co.uk.

Our payment system currently works as follows:

Invoice generated in Quickbooks Online and the link to it sent to the client. The invoice contains our bank details so that clients can pay either a 50% deposit or full amount by BACS. The balance is due 6 weeks before the course date, I generally have to chase clients up when their balance is due.

The main reason for payment via BACS is to avoid fees, however, it requires me checking the bank account and then sending an email to the client to acknowledge payment. If it's an international transfer, I steer people to Transferwise (low fees). Occasionally, clients prefer to pay by card, so we use Pay With Bolt, which connects Stripe to Quickbooks. Again, the main reason for using Stripe is to keep fees down to a minimum.

Once a payment has been made, it then needs to be matched up manually with an invoice in Quickbooks. This is really the only way to tell whether there are outstanding payments.

I hope that gives enough information to go on, I feel that there must be a more effective or efficient way of doing this.

 

[Nico Albrecht]

Get rid of QuickBooks. Poor written software. Get an accounting software that allows or integrates partial payments via credit card or paypal. Set reminders template accordingly in accounting software to chase final payment 6 weeks before tour date. Add 1% to your pricing to compensate for fees. If done well you only have to create an invoice and from there the system is chasing the rest. Check out zoho one with their packages you could have a fully automated system from crm to booking and accounting that syncs quite nicely.

 

[K0608]

Thanks, I should add that the main reason for using Quickbooks is that my accountant is able to provide it for no cost. I used to use Xero, which I actually preferred, but it was costing us £40/month, which might not sound much, but then again, our turnover isn't really that much, as the business is essentially myself and a few guides that work on a sub-contracted basis as and when the work comes in.

 

[K0608]

One option I had thought of was to just send a Pay Now link to the client and for the invoice to then be automatically generated, but not then sent to the client, unless asked for.

 

[DavidWH]

Try square or sumup, cant remember which one, but it can send an invoice and take payment online by card.

Quite slick, fees may be a bit much though.

 

[MBE2017]

I should add that the main reason for using Quickbooks is that my accountant is able to provide it for no cost. I used to use Xero, which I actually preferred, but it was costing us £40/month

This is the crux of your problem, stop trying to do things cheap, do them well. Better efficiency will pay for the better software, use the time better, increase sales, put your price up as suggested to cover it.

It is the only way in the long run, or you will always be cutting corners, saving some money but losing time.

You can always make more money in any business, but you can never make any more time.

 

[GazNicki]

I have used software called Zoho which I find works very well.

In my Zoho I have linked various payment options which include:

Stripe Card Payments
GoCardless Direct Debit Payments
PayPal Payments
BACS Details on each invoice

Whilst different methods have different charges - the streamlining makes the costs worthwhile. So, if my invoice is £120 and it is paid via Stripe, I may lose a few quid in the process. But I could easily make the invoice £125 to cover my fees.

You can allow partial payments through ZOHO, offer client portals so that clients can log in and see their payment history and update their payment methods.

Zoho also offers all the tools you need to do your accounts properly too, and they offer a free package to smaller operations (there are limits on client numbers, etc.)

As people have said, work smart. This may cost a few quid in the long run - but the amount of time you save is immeasurable.

Here's and example:

I offer recurring invoices for retained services to 2 clients. Client 1 always pays on time, and set up their own Standing Order to pay my monthly invoice. Every month I log into ZOHO and I need to record the payment as being sent. It's simple, but I have to check the bank first, then log into Zoho, record the payment, send the receipt.

Client 2 is notoriously difficult to get payments on time from. They usually pay by bank transfer, but I have to hound them for the payment. It can often be 2-3 weeks late. Client 2 recently agreed that Strip would be best for them, as they would prefer the payment be taken from a card. Since they have agreed to a monthly payment plan, I log into Zoho the day the balance is due to check my account as normal - and then charge their card immediately with the click of a button. They automatically get a receipt, the account balance automatically gets set to settled, and Zoho records the payment.

Payment via Strip takes a few days. The payment isn't coming into my bank account until around 7 days later - but I know it is coming.

If Client 1 & 2 went with GoCardless, their Invoices would be automatically paid via Direct Debit after 14 days of the invoice.

 

[nelioneil]

I'm also looking for something similar that integrates with Stripe and takes recurring monthly subscription payments via card without manually creating a subscription and charging via stripe.

 

[GazNicki]

I'm also looking for something similar that integrates with Stripe and takes recurring monthly subscription payments via card without manually creating a subscription and charging via stripe.

Hi Neil

Just on your post, I have a few questions.

Firstly, does it have to be Stripe, and if so - why?

Secondly, how are you generating the subscription if it is not manually? Do you have an online store where you sell the subscription service?

Also, I may be misunderstanding your post but it seems you want to integrate with Stripe but not have stripe charge? Or do you want Stripe to handle the charging automatically and the generation of the subscription be made automatically?

 

[nelioneil]

Hi Neil

Just on your post, I have a few questions.

Firstly, does it have to be Stripe, and if so - why?

Secondly, how are you generating the subscription if it is not manually? Do you have an online store where you sell the subscription service?

Also, I may be misunderstanding your post but it seems you want to integrate with Stripe but not have stripe charge? Or do you want Stripe to handle the charging automatically and the generation of the subscription be made automatically?

I want to use the Stripe payment platform for the payments but I would like it (or another software) to automatically handle recurring billing via a website store. Currently set prices are charged for individual services. If we wanted to charge a customer monthly a recurring monthly invoice would be raised and sent via Xero to the customer to pay, but we want to collect payments automatically via card.

 

[GazNicki]

I think the problem here is using different softwares.

Stripe has the ability to create subscriptions in the Billing Section of the Stripe Dashboard. These subscriptions should recur and automatically charge the client.

However, you are using Xero to generate your invoices - therefore you need to see if Xero can automatically charge the saved card through stripe - which I have found they do:

xero. com/blog/2019/06/xero-stripe-get-paid-faster/

You can therefore set the auto-charge feature in the Xero dashboard for recurring invoices.