Invoicing may not be the most fun part of your job, but it’s a fundamental process to keep your business running. However, without a streamlined invoicing process, your business might face some major issues. Delays in payments result in serious cash flow problems. Therefore, it’s very important for you to improve your invoicing process. Here are seven tips you can implement to get paid faster as well as improve your accounts receivable management.
1. Establish clear payment terms upfront.
Your payment terms and policies determine when and how you will get paid. Before making a deal with a client, you should explain your payment terms and policies to them. This needs to be done so that your client isn’t surprised when receiving an invoice from you out of nowhere. Communicating the payment terms and policies in advance will also help you get paid in a timely manner.
Ask your client concerning the time and method of payment they prefer since both of you should feel equally comfortable with the deal being made. Don’t hesitate to tell your client about the consequences of a late payment. They will appreciate it if you can tell them everything beforehand.
2. Make your invoices look impressive.
Believe it or not, your invoice designs do matter. Your clients can judge your professionalism just by looking at your invoice templates. Impress your clients with well-designed invoices. We strongly recommend that you customize and personalize your invoices for different clients. While attractive designs are important, keep in mind that you should also keep your invoices simple and easy to understand, so you shouldn’t add too many logos.
3. Provide complete and relevant information.
Don’t just focus on your invoice designs. Focus more on the important details you should include on your invoices. A good invoice should include all relevant information such as; product or service description, order number, GST amount, shipping costs (if any), total amount, invoice number, due date, payment options, clearly defined payment terms, late payment charges, contact information and a personalized thank you note.
4. Invoice your clients as quickly as possible.
The best time to send an invoice is as soon as your project with a client is completed or right after your product or service is delivered to them. Prompt invoicing basically leads to a faster payment. This will show your professionalism to your clients. When it comes to recurring invoices, consider sending them on the same day (or date) every month to show your consistency.
5. Follow up with your clients.
If your client doesn’t immediately pay the invoice you have sent a few days before, then you shouldn’t hesitate to send them a reminder concerning the upcoming payment due date. You can do this a week or a few days before the due date. In addition to helping you get paid on time, sending reminders will also benefit your clients, as they won’t have to spend extra money on late payment charges. Remember to keep your reminder messages professional and courteous.
6. Utilize digital tools.
Nowadays, all businesses should have gone paperless. Providing an online payment solution and creating digital invoices will greatly help you improve the efficiency and effectiveness of your business operations. Most of your clients may also be more aware of email than their snail mail. They will prefer a handy method of payment that allows them to pay their bills anytime and anywhere.
7. Automate your invoicing process.
If your business requires you to create invoices at all times, the best way to improve your invoicing process is to automate it. Generating recurring invoices for multiple clients is very time consuming. Maintaining invoice details and manually checking your client payment statuses is also inefficient. At times, you could forget about unpaid invoices and you’re not sure if you’ve reminded your clients of their late payments.
By automating your billing process, you will be able to focus more on other important tasks. An invoicing software helps you in many ways, from generating customized recurring invoices, maintaining client data, scheduling and sending reminders, tracking the status of your invoices and many more. We highly recommend that you choose a Cloud-based invoicing software, so you can easily create and send invoices anytime and anywhere.