Reliable invoice management is a necessity to run a successful business. However, for many business owners, creating, sending and following up on invoice payments can be a challenging and time-consuming process. Invoicing is critical to maintaining a positive cash flow, so it’s crucial that your business stay on top of sending and collecting invoices. Check out these four important invoicing tips.
Remember to Send Invoices
This may sound incredibly obvious, but many businesses simply forget to send out invoices. When your business is busy, it can be a real challenge to find the time to send invoices. Customers aren’t going to proactively follow up to pay you — you need to initiate the transaction by sending an invoice. If you don’t remember to send an invoice you simply won’t be paid for the work you completed!
Send Follow-Ups and Reminders
If you’re not keeping track of money owed to your business, it could be months before you realize you’re collecting payments late, or worse, missing them entirely. Create an A/R aging report to categorize your business’s accounts receivable by the length of time an invoice has been outstanding. Once you have this handy, you will be able to quickly identify accounts that are current, and filter past due payments by the numbers of days they are overdue. Be proactive and call or email customers shortly after you send the invoice, provide clear payment notices and always follow up until you’re paid.
Set Clear Terms
A clear and detailed invoice is a mark of professionalism and will increase your chances of getting paid the correct amount, on time. It’s important to make sure every invoice is clear and includes all the necessary information for the transaction to be completed, such as an itemized list of products or services completed, the due date and your accepted payment methods. If your customers are left questioning what they’re paying for or how much they owe, they are more likely to avoid or delay payment.
Use a Digital System
Digital invoicing creates operational efficiencies, saves you money with scalable subscription plans, and makes invoicing easy for you and your customers. Sending invoices instantly enables clients to pay instantly, helping you get paid faster. Plus, you’ll automatically have a backup copy saved in your system for your records.
Bottom line, if your business requires you to send invoices, you need to find the method that works for you. Prioritizing your invoice management will save you time, save you money and keep your business’s cash flow healthy!