How to Set up Automatic Payments for your Business in 9 Easy Steps

Freelancing is a tough business. It’s even tougher when you don’t get paid for your work. Whether it's because the owner of the company you're working with doesn't have enough budget to pay, or they just can't find a way to send payment and freelancers often find themselves in a difficult situation.

In this post, we'll discuss how to set up automatic payments so that you never miss out on payment again!

What is an automated payment?

When you set up automatic payments for your business, you agree to have a certain sum of money automatically deducted from your bank account or credit card on the due date.

You can authorize an automated payment with all kinds of activities like checking accounts, savings accounts, debit cards, and more! The amount that's collected is the exact amount due for the payment.

You can set up automatic payments to be made using your credit card, debit card, checking account or savings account.

Automated Payments: The Benefits

As a freelancer, you’ve probably been there before the client has asked for your invoice, and promised to pay as soon as possible.

But after weeks of chasing them down on payment, they tell you that their budget is tight this month and have no idea when or how they can send payment. We know what that feels like.

The good news is that if you set up automatic payments, your business will be paid on time! When a client asks for an invoice, you can send it right away and when they do pay.

They’ll have the option to schedule their payment so that it happens automatically in the future.

• Saves time

We all know that time is money, and setting up automated payments will save you a lot of precious minutes.

When your clients are choosing to pay with their credit card or debit card instead of cash it takes the hassle out of having to send an invoice for them- they can set it up themselves!

• Better Cash flow

They lead to better cash flow. If you have a client who is always late paying their bill, using automated payments will help your business get paid on time and keep money flowing into your account each cycle.

You can have a more solid understanding of your cash flow situation, and know that you are always being paid on time.

• Client convenience

Setting up automatic payments can help you avoid those awkward conversations with your clients, so you can both focus on the work at hand instead.

You’ll have a better relationship with your clients when you don't need to hassle them about their late payment fees!

• Glitch free functionalities

Automated payment method works as a subscription management tool you can use to track the number of active users, subscribers and payments.

It allows businesses to stay up-to-date with all kinds of functionalities that will help them grow as an organization.

• Avoids potential damage to credit score

For businesses, using automated payments can help you avoid potential damage to your credit score from late or missed payments.

You don't need to worry about accidentally missing a payment in the future when they are automatically deducted- helping ensure that your business stays afloat!

Example of Automatic Payment Method

You  can set up automatic payments in a similar way to how you can pre-approve certain transactions.

For example, if you have student loans and your student loan servicer offers an interest rate discount when you sign up for auto bill pay, which means paying off your loans as quickly as possible and saving some money on interest while doing so, then that might be something you want to do.

All of your clients will be able to use this feature  so they can make their next payment on your invoices.

You'll be able to set up the system so that reminders are sent out before each payment is due, meaning you won't have any more late payments!

How Do I set up Automatic Payments?

1. Find the payment Gateway that suits you

The initial step to set up  automatic payments for your business is to find the payment service provider that works best for you and fits within your budget.

We recommend using a trusted company, like PayPal or Square Cash, who can easily integrate with your existing online accounting software.

Once you set up automatic payments for all of your clients will be able to use this feature when they make their next payment on your invoices.

To set up an automatic payment through a payment gateway, the steps to take will depend on which provider you choose. But it's as simple as filling out the necessary information, and you'll be all set.

2. Auto-generate your invoices

Another way to set up automatic payments is by auto-generating your invoices. This will save you the time of having to fill out payment information each time!

You can automatically generate recurring invoices for your clients, so all they have to do is select a credit card or checking account and authorize the payment. Â

You can set up the system to send out reminders before each payment is due- so you won't have any more late payments.

3. Make sure of right Currency Inputs

You  can also determine the currency input on your invoices. Figure out what makes sense for you and your clients by asking them which version of their invoice they'd like to receive or if there is a preference at all!

You might want to ask about the preferred currency when negotiating with a client by that way, things won't be awkward later down the line.

When you're sending out invoices, make sure that the currency input is clear and correct! You can avoid confusion about payment fees by including this information on your invoice to get paid automatically with a credit card or checking account.

4. Allow variable amount auto payments

To allow your clients to pay based on their own level of service, you can set up variable amount auto-payments for each invoice. Just let them know that they should expect a reminder email before their next payment is due!

You can also take advantage of this feature when it's time to settle the account at the end of the month.

5. Pre-approval transactions

You can  also set up automatic payments with pre-approval transactions in a similar way.

This type of payment requires your client to authorize their card in advance and they'll be able to choose the date that you charge them for each service.

These types of payments are less common for freelancers and entrepreneurs but are common for services like those offered by Uber drivers, where a card is pre-approved when an account is activated and charged after every service.

All of your clients will be able to use this feature  when they make their next payment on your invoices. You can set up the system to send out reminders before each payment is due- so you won't have any more late payments!

6. Offer Multiple payment gateways

One of the simplest things you can do to ensure your invoices get paid on time is to make sure they're as easy as possible for your clients to pay.

Not everyone likes to pay by bank transfer, and you may not have a PayPal account ready and able to receive client payments. It's important to set up your invoice so that your clients can pay in a way that works for both them and you.

7. Schedule Reminders

You can automate the process of invoicing with any application and still avoid confusion. And you won't have to worry about forgetting a payment!

You can set up automated reminders so that your clients know exactly when they need to pay their next invoice- and what amount is due as well, depending on how many times per month or year they've opted to pay.

This technology will save you so much time- and it's only the beginning of what technology can do for your business!

8. Reward Clients for Signing up for Automatic Payments

Offering a reward to clients who sign up for automatic payments is another idea. Consider rewarding early adopters of the service by providing a small discount off their invoice, either a percentage or dollar amount deducted from their total bill in the month that they sign up for automatic payments.

You can also offer an  extra benefit to clients who use this option, like early access or special offers.

9. Security

Automatic payment providers will offer you a high-level of security and encryption in the handling of your client's personal data.

All information stored by these companies is encrypted to protect it from hackers, with multiple layers of protection included as well.

While automatic payments are convenient for both businesses and their clients, make sure that any automated merchant you choose has high-level security and encryption in place.

You can update the payment terms on your invoice to include a note about accepting recurring payments.

Conclusion

The Automated Payment set up  is the best option if you're looking for a convenient solution that will save your clients time and money.

You don't want to risk losing any of your clients by waiting too long to set up an automated payment system and make sure this is part of your business plan as soon as possible!