Managing Customer Payments in Bill.com

Managing customer payments can be a real headache for many businesses.

Luckily, Bill.com offers a smooth payment processing system that makes it easy to send invoices and collect payments from customers.

In this article, you'll learn how to fully leverage Bill.com to handle customer payments efficiently. We'll cover setting up payment rules, sending professional invoices, enabling fast online payments, dealing with failed transactions, and more.

Introduction to Bill.com and Customer Payments

Bill.com is an automated platform that allows small and medium-sized businesses to easily manage their billing and payments online. By centralizing invoices, bills, and payments, Bill.com aims to save users time and provide visibility into cash flow. As customer satisfaction depends greatly on having smooth transactions, Bill.com focuses on enabling fast, simple payments.

What is Bill.com and Who Uses It?

Bill.com is a cloud-based software platform built to digitize and automate billing and payment workflows for businesses. Key features include:

• Online invoicing to quickly create, customize and send invoices

• Payment processing to collect invoice payments via credit card, ACH or check

• Account reconciliation to match transactions and sync with accounting software

• Workflow approvals for invoices and payments

The platform aims to save accounting departments time on manual tasks so they can focus on serving customers. Ideal Bill.com users are small and mid-sized businesses across many industries, such as marketing agencies, law firms, contractors, wholesale distributors and nonprofits.

Key Benefits of Bill.com for Managing Payments

Centralizing payments with Bill.com provides several advantages:

• Send invoices and accept payments online - Get paid faster by sending invoice links to customers and collecting credit card or bank account payments through the platform.

• Deposit checks digitally - Skip trips to the bank by taking a photo of checks to deposit them.

• Payment tracking - Monitor whether invoices are viewed, approved or paid through an activity dashboard.

• Accounting sync - Seamlessly connect Bill.com with QuickBooks, Xero or NetSuite to avoid duplicate data entry.

• Workflow efficiency - Automate payment processes instead of handling manually to reduce human error.

Why Fast and Smooth Payments Matter to Customers

For the businesses using Bill.com's services, getting customer payments quickly and seamlessly is critical for:

• Cash flow - Faster payments means improved liquidity to pay vendors and expenses on time.

• Customer service - Issues with payments or complicated processes hurts customer satisfaction and loyalty.

• Trust and reliability - Smooth transactions demonstrates dependability in managing financial transactions.

That's why Bill.com focuses on payment automation as a core part of its value proposition to customers. By making payments fast, simple and transparent, businesses can get invoices paid promptly while keeping customers happy.

How do you keep track of customer payments?

Keeping track of customer payments efficiently is critical for the financial health and cash flow of any business. Here are 5 best practices for tracking customer payments:

1. Use Invoicing Software

Investing in invoicing software like Bill.com can help automate payment tracking. Features like automatic reminders for outstanding invoices, payment tracking/matching, and reporting provide visibility into who has and hasn't paid. This saves the manual work of chasing payments.

2. Integrate With Accounting Software

Connecting your invoicing platform with accounting software creates a seamless flow of payment information. Transactions can sync in real-time, allowing you to see paid statuses in both systems. This gives an integrated view of payments.

3. Log Payments Manually

For one-off or non-system payments, keep a spreadsheet or ledger logging invoices sent, payment due dates, amounts received, and payment methods. Update it whenever you receive or make a payment outside your main systems.

4. Track Payment Methods

Document how each client tends to pay bills - credit card, ACH, check, etc. This helps forecast payments since payment method impacts speed. It also flags any sudden changes that may require follow up in case there's an issue.

5. Set Payment Reminders

Use calendar reminders, tracking apps, or built-in software features to prompt you to follow up if an invoice is past due. Automated reminders ensure you catch late payments quickly.

Implementing even a few payment best practices reduces confusion, eliminates lost payments, and improves financial oversight.

What are the payment methods on Bill com?

Bill.com offers several convenient payment methods to choose from when making or receiving payments:

ACH

ACH payments allow you to easily pay or get paid directly from your bank account. This is a fast, secure, and cost-effective option for transactions within the US.

Virtual Card

Virtual card numbers act just like regular credit cards for one-time or recurring billing needs. This allows you to keep your financial information private.

Pay By Card

You can pay or get paid with all major credit and debit cards, including American Express, Mastercard, Visa, Discover, and bank debit cards. This offers flexibility in payment options.

International Wire

For international payments, Bill.com provides fast and secure cross-border wire transfers in over 130 currencies to recipients in over 200 countries worldwide.

BILL Checks

Bill.com can print and mail physical checks on your behalf to any recipient. This is useful when the payee requires or prefers checks.

Pay Faster

For even faster payments, Bill.com offers expedited check delivery and next-day ACH transfers to quickly pay vendors and receive payments from customers.

With its versatile payment options, Bill.com aims to provide the flexibility businesses need to handle payments smoothly. The platform strives to make paying and getting paid simple, fast, and secure.

How do you handle an invoice payment?

When an invoice is received, there are several key steps to ensure smooth processing of the payment:

1. Review and record the invoice details - Carefully review the invoice to verify the amount owed, services rendered, billing codes, payment terms, due date, and supplier information. Record key details in your accounting system or ERP.

2. Obtain internal approval - Route the invoice for approval based on your company's pre-defined process. This may require matching to a purchase order, assigning an approver based on spend thresholds, or submitting through an automated workflow.

3. Schedule payment - Once approved, schedule the payment to be processed on or before the due date, taking into account processing times required by accounting and the payment method.

4. Pay supplier - Finally, remit payment to the supplier through the agreed-upon payment method such as check, ACH transfer, wire transfer, or payment card. Be sure to reference the correct invoice number.

Careful attention to detail in these steps helps ensure on-time, accurate payments to suppliers and avoidance of late fees or other issues. Leveraging automation for routing, approvals, and payments can also increase efficiency.

What is a clearing account in Bill com?

A clearing account in Bill.com acts as a temporary holding place for money being transferred between bank accounts. When you pay a bill through Bill.com, the money moves from your bank account into the Bill.com clearing account first. Once the payment clears, Bill.com transfers the money to the vendor's bank account.

Here are some key things to know about clearing accounts in Bill.com:

• Clearing accounts help simplify bank transactions and syncing by keeping money transfers consolidated in Bill.com until they are fully processed. You don't have to try tracking many small transactions across accounts.

• Money usually only stays in the clearing account for 1-3 business days while payments clear between banks. This temporary account is not meant to hold money long-term.

• Clearing accounts eliminate timing issues that can happen between when money leaves your account and arrives in the vendor account due to external bank transfer speeds.

• You cannot directly access or withdraw from the clearing account. Bill.com manages all money movement in and out of it behind the scenes.

• Having a dedicated clearing account can help you better track and manage vendor payments that are in-flight compared to money already fully dispersed to recipients.

So in summary, a Bill.com clearing account gives a short-term holding place for money to simplify bank transaction tracking across your business accounts and external vendor accounts. It acts as a convenient go-between to avoid timing issues or errors during payment processing.

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Setting Up Bill.com to Receive Customer Payments

Configuring payment methods and options in Bill.com before sending first invoices is an important step to ensure smooth transactions. Here are key areas to focus on:

Enabling Credit Card and ACH Payments

To allow customers to pay invoices online via card or bank transfer, you need to enable payment gateways in Bill.com.

• Enable Braintree to accept credit card payments. This allows Visa, MasterCard, American Express and Discover cards.

• Enable ACH payments to allow bank transfers directly from your customer's bank account. This pulls funds from their account.

Enabling both payment options gives your customers flexibility to pay how they prefer.

Setting Payment Terms and Due Dates

Set standard payment terms under Settings. Typical terms are Net 30 or Net 60 days.

• Net 30 means payment is due 30 days from the invoice date.

• Net 60 means payment is due 60 days from the invoice.

You can customize terms per customer if needed. For example, Net 15 for some clients, Net 45 for others.

Also configure your due date rules under Settings. Choose from options like due on receipt, due on a specific day of the month, or X days from invoice date.

Adding Customer Payment Details

To receive electronic payments from customers:

• Collect their credit card details or bank account information.

• Enter this into the Payment Info section of their Customer Profile in Bill.com.

This stores their payment details securely in the system. When you send them an invoice, their account will be charged automatically on the due date.

Configuring these areas upfront ensures you can receive on-time customer payments smoothly. Let me know if you need any clarification or have additional questions!

Sending Invoices and Receiving Payments

Creating and sending professional invoices is key to getting paid on time by customers. Bill.com provides tools to streamline the invoicing process from start to finish.

Creating Professional Invoices in Bill.com

You can quickly generate polished invoices in Bill.com by:

• Adding your company logo and branding

• Specifying services rendered or products sold, with item/qty/cost details

• Customizing terms, due dates, etc.

• Saving invoice templates for reuse

This ensures your invoices look polished and clearly convey what the customer owes, for maximum clarity.

Emailing Invoices Directly to Customers

Once an invoice is generated in Bill.com, you can:

• Email it directly to customers with one click

• Download it as a PDF to send manually or print and mail

• Customize the email message

Emailing invoices is fast, free, trackable, and environmentally friendly.

Allowing Online Card/ACH Payments

To allow customers to pay invoices online, enable:

• Credit card payments

• Bank account (ACH) payments

Bill.com will include secure payment links when invoices are emailed to customers. Customers can easily pay on any device with one click.

Processing Received Payments

As customers pay invoices, Bill.com automatically:

• Syncs and applies payments

• Updates invoice status

• Sends payment notifications

• Codes payments to appropriate accounts

This simplifies payment reconciliation and cash flow management.

With Bill.com's invoicing and payment tools, you can get paid quickly and efficiently. The platform centralizes information to save time and reduce errors.

Handling Missed or Failed Payments

Maintaining positive relationships with customers is key, even when payments are missed or fail. With some thoughtful communication and flexibility, businesses can resolve these issues smoothly.

Setting Up Auto-Reminder Rules

Bill.com allows users to configure automatic payment reminder emails to be sent to customers on a set schedule. To set this up:

1. Navigate to "Settings" and select "Reminders"

2. Click "New Reminder Rule"

3. Choose if you want reminders sent for invoices or bills

4. Set the number of days after due date to trigger the reminders

5. Customize the email template language as needed

6. Save the rule

Now customers will receive friendly, automated reminders to pay open invoices or bills. The reminders can help prevent late fees and declined payments over time.

Reaching Out to Customers

If a payment still fails after reminders are sent, a quick personal follow-up is warranted:

• Send an email checking in and kindly asking them to update the payment method on file or try processing again. Offer to help troubleshoot any issues.

• Make a phone call as well to resolve the matter quickly and maintain the relationship. Discuss reasons for the declined payment or late status.

The key is to be helpful, not accusatory, and work together to fix the problem.

Offering Payment Plans if Needed

For reliable customers facing temporary financial hardship, consider offering installment payment plans, such as:

• Three equal monthly payments

• 50% upfront, 25% in 30 days, 25% in 60 days

This flexibility shows customers you care and does not damage the relationship long-term over a singular missed payment. The customer remains loyal while you still receive full payment.

Troubleshooting Declined Payments

If a customer's payment won't process, there may be an easy fix:

• Check for typos in payment details like account numbers

• Verify credit card expiration dates are current

• Ask if debit/credit card limits need raising temporarily

• Switch payment source type, like from ACH to card

• Have customer call bank to allow the transaction

With a little bit of communication and troubleshooting, failed payments can typically be resolved to keep cash flow strong.

Best Practices for Exceptional Payment Experiences

Recommendations for ensuring consistently smooth customer payments.

Set Clear Expectations Upfront

When sending the first invoice to a new customer, be very clear and transparent about your payment terms, accepted payment methods, and standard payment timelines. This helps avoid confusion down the road. Specify when payment is due, whether you accept credit cards, ACH transfers, checks, etc. and how long funds may take to clear based on the method. Give customers all the details they need to submit timely payments from the start.

For example, your first invoice could state:

"Payment Terms: Net 15 days. We accept Visa, Mastercard, ACH bank transfer, or checks. Credit card and ACH payments clear within 1-3 business days. Checks may take 5-7 days to clear."

Make Payment Submission Easy

Allow customers to instantly pay invoices online via credit card or bank account transfer. Eliminate friction in the payment process. Options like PayPal, Stripe, Square, or Bill.com make it simple for customers to pay with a few clicks from a smartphone, tablet, or computer.

Automated payment reminders before due dates also help customers remember to pay on time.

Act Quickly on Any Payment Issues

If a customer payment fails or is late, address it promptly. A quick phone call or email prevents small issues from spiraling into bigger problems. Politely inquire about the situation, offer flexible options if needed, and request an updated timeline.

Rapid response keeps communication open, maintains goodwill, and increases on-time payment rates. Letting issues linger erodes trust.

Appreciate Customers Publicly

When customers do pay on time, show appreciation by thanking them publicly on social media or your website. Highlight great customers as examples and to encourage the habit of prompt payment. Social proof encourages others to follow suit.

For example, give monthly shoutouts like:

"Huge thanks to @CustomerX for their exceptionally fast payment this month!"

This motivates customers to pay on time so they can earn public appreciation too. It incentivizes the behavior you want to see.

Conclusion and Key Takeaways

Recap of critical steps for ensuring consistently smooth customer payments in Bill.com.

Set Up Bill.com Thoughtfully Upfront

Take time early on to properly configure payment methods and rules in Bill.com. Consider enabling multiple payment options like cards, ACH and wires based on your client base. Set up automated payment reminders and customize rules for handling failed payments to match your preferences.

Make Paying Invoices Frictionless

Simplify the payment experience for customers by allowing instant online payments and ensuring invoices are clear. Enable credit card payments and consider allowing ACH payments as well. Provide detailed invoice line items and include adequate payment instructions upfront.

Stay on Top of Failed Transactions

Have procedures in place to promptly handle any failed customer payments in Bill.com. Configure automated reminders for past due invoices. Proactively reach out to customers directly regarding declines or returns. Offer to update payment details if a card has expired.

Show Appreciation for Good Customers

Recognize customers who consistently pay invoices on time. Send thank you notes or highlight exemplary customers publicly on social media. Consider small rewards like gift cards to encourage prompt payments.

Related posts

• Setting Up Automated Payments in Bill.com
• Using Bill.com for Global Payments
• Creating and Sending Bills in Bill.com
• Processing Invoices in Bill.com Made Easy