Make Payments Easier with Fee Installments
“I really look forward to paying my monthly invoices.”
How many clients provide that kind of positive feedback when it comes to managing their business bills? It’s probably not very many, because it can be disheartening to finish up the month by reviewing outstanding expenses and realizing you still have some big dollar amounts to pay.
If your clients are feeling the pinch when it comes to paying invoices on time and in full, you can reduce some of those pain points and improve cash flow for your own accounting firm. Offering a fee installment option allows convenience and flexibility for you and your clients when it comes to easy payment processing and cash flow management.
What is a fee installment payment plan?
Fee installment is a service used by accounting firms and other professional service providers to make it easier for clients to make their payments flexibly and continue a positive relationship with the firm.
Offering fee installment, or fee financing, as it’s more commonly known, allows your clients flexibility in how and when they make their payments, while ensuring your bills still get paid.
When using fee installment as a payment option, your clients are allowed to divide up their total invoice amount and pay it out over three to 12 months. However, you get your payment immediately, and in full, because QuickFee covers the total invoice amount and gives the client the gift of time to spread out their expenses.
Think of fee installment as a payment plan that accounting firms can extend to their clients while still keeping their cash flow steady and reducing the monetary impact of late or lax payments.
How is QuickFee different than giving a loan to a client to cover their fee?
QuickFee provides a valuable service for accounting firms because it eliminates the need to take additional risk on a client in order to offer them flexibility.
Giving a client a loan from your firm can mean additional work and cost to determine their creditworthiness, as well as jumping through regulatory and legal hoops to ensure you’re managing the program in the right way. QuickFee takes that extra risk and effort out of the equation by serving as a silent middleman to provide clients with payment flexibility.
The QuickFee model was designed by CPAs for CPAs and is focused on mitigating the pain points that typically come with ensuring timely client payment. The easy fee installment option reduces the potential for negative client experiences or for overextending your firm through what amounts to zero-interest loans (by allowing clients to stretch their invoice due dates).
What are the benefits of offering a fee installment program at my firm?
Many firms have about 20 percent of their revenue tied up in accounts receivable. Offering QuickFee can accelerate payment processing and cash flow for the firm, while at the same time giving clients breathing room and flexibility.
Save time with self-service fee installment set-up
QuickFee’s fee financing program is available to clients through a payment portal developed for your business. The service is easy to use for clients and requires very little explanation to self-service payments and take advantage of the fee installment plan.
QuickFee also integrates with your invoicing system so your staff spends less time matching up invoices with paper checks or making sure client payment documents are in order.
Offering fee financing through an installment payment plan cuts down on the back and forth communication with clients to ensure payment. It allows your staff to be more efficient in determining when and where to personally reach out to clients over sensitive issues like late payments, and gives them “good news” to share about flexible payments.
Clients typically want to pay their bills, but may be embarrassed and not sure how to express their inability to pay in full. Fee installments allow you to offer an easier, more efficient means of payment, instead of sacrificing cash flow for extended periods, creating individualized informal payment plans or writing off all or parts of invoices.
Save money by reducing processing time
When you’re managing payments manually, time is money. If you’re managing payment processes manually, your staff is spending valuable time processing transactions, depositing checks, making phone calls to check up on late payments and handling many other headaches that come with ensuring timely client payments.
Fee financing takes away the opportunity for late payments because the client can’t afford the lump sum. Instead of your cash flow being impeded, QuickFee makes sure you get paid in full immediately, while giving your clients the added flexibility they desire.
Earn money through increased loyalty and deeper business partnerships
Giving clients a way to break up their large invoices into manageable portions makes it easier for them to pay on time. It also makes it easier for them to commit to additional work.
When the payment process is frictionless, the client’s comfort level with doing business increases. And, instead of clients feeling hesitant to sign on for costly but necessary projects, having the flexibility to pay over time instead of in one lump sum can make it easier to agree to put new work on the books.
When it comes to your business, freeing up time and increasing cash flow gives you greater freedom to focus on the future. You can take the time and money previously spent on chasing down payments and invest it into business development or innovation to keep your firm healthy and growing.