Chasing payments is something no one wants to spend their time doing. When it comes to managing a brewery or operating a winery, you have a million other things you could be doing instead of sending email reminders or making phone calls to your licensees who haven’t submitted payment on time.
We’ve heard from a lot of wineries and breweries that the entire payment process and accounts receivable workflow can be a headache. From manually distributing invoices and processing payments to sending reminders and dealing with no payment.
So here we’ll discuss some of the main reasons your licensees or customers might not be paying on time, and what you can do to help prevent that from happening in the first place.
1. Keep an on-demand statement of account to prevent lost invoices
Stacks on stacks of paper invoices. That’s what the back room of a restaurant or a bar is bound to look like (unless they’re using Notch for accounts payables- wink! In that case, gold star!)
Even with the plethora of technology now available to us, it’s still common for licensees to organize their bill payment process around a stack of paper invoices.
If you’re still sending paper invoices, you’re doing yourself a huge disservice in getting paid. You’re drastically increasing the risk of your invoice getting lost or misplaced, which will result in your payment taking longer than expected, increasing your days sales outstanding (DSO).
Use digital invoices instead
Digitizing your accounts receivable and invoice process could deliver some serious impact on improving your DSO.
With a platform like Notch, you can send invoices by email so that they’re always accessible online. You can also provide your licensees with an always up-to-date statement of accounts. Your licensees can access it on demand to see paid bills and outstanding invoices. They can even pay online directly using an embedded payment link–a great way to get your customers to switch to online payments.
Imagine how many fewer invoices would slip through the cracks. Plus, it makes issuing the invoice faster for your winery or brewery’s accounts receivables team.
Operate a winery? Read How to Choose the Best Winery Software.
2. Schedule payments to limit manually pushed payments
Just like how processing your own winery or brewery’s accounts payables manually can be a huge time suck, it’s the same for your licensees.
(p.s. We can also help with that! Learn more about Notch’s accounts payable platform)
The reason for late or outstanding payment could just be that your licensee’s AP team is behind on their payables. Manually pushing payments, like writing cheques or even having to call suppliers to submit credit card information, is not efficient and could result in a backlog that your brewery or winery gets caught in.
Digitize and schedule licensee payments
Instead of waiting for your licensees to push payment to you, find accounting automation software that will allow you to pull payments from your licensees.
The right accounts receivables automation platform can help you securely and legally store payment data. With that, you can work with your licensee to choose a date to automatically pull payment.
With Notch, you’ll never be at the mercy of when your licensee’s AP team pushes payment. You’ll have the power in your hands. Notch will automatically pull payment for you without a second thought.
And if the payment bounces, Notch will continue to retry the payment, creating hands-off accounts receivables for your brewery or winery.
Manage a brewery? Read How to Choose the Best Brewery Management Software.
3. Automate payment reminders to keep your invoice top-of-mind
While it can be frustrating when your invoice is forgotten, it’s understandable. Between cumbersome payment processing procedures and stacks of paper invoices, not to mention all the other things your licensees have going on, it’s understandable an invoice may get forgotten.
There are ways as a brewery manager or winery owner that you can help your licensees out, and in turn, help yourself out.
Automate payment reminders
No brewery or winery operator has time to manually send payment reminders to their licensees.
And even if you do have the time, we really don’t recommend wasting your time doing it. Especially when there are AR automation platforms that can take care of it for you.
To prevent your licensees from forgetting your payment is coming up, use a tool like Notch to schedule payment reminders. You can customize the cadence to what works best for you. Whether you want to remind them the day before payment is due or a week. You can also opt for follow-up reminders once the payment is overdue.
Have outstanding accounts receivables? Check out our free templates for following up on outstanding invoices
4. Offer a variety of payment methods to help with cash flow
The restaurant and food service industry has notoriously low-profit margins, which can mean cash flow can get a little tight.
If you’re using payment terms like cash on delivery or only accept cheques, cash or EFT, you may be making it more difficult for your licensees to pay you within the terms you’ve set.
Establish a predictable payment cadence and accept credit card payments
Setting up a predictable cadence for when you will pull payment from your licensees can help them know what’s coming and plan ahead to have funds on hand.
Additionally, accepting credit cards can also help your licensees combat any cash flow challenges.
5. Say goodbye when it’s not a good fit
If you have a licensee who’s constantly paying late, losing invoices or not paying at all, it may be time to say goodbye.
While this blog provides four concrete ways to help your licensees pay on time, the fifth option is that they may not be a great fit for your business at this time. And that’s okay! While it’s never easy to part ways, we do want to encourage you to reflect on what’s best for your business and time.
Licensees paying on time and wondering how to increase sales? Download our free guide on How to Increase Licensee Sales and Profits.