Regardless of the size of your business, sorting things for the accounts receivable or AR department can be quite enjoyable. The same goes for the billing or invoicing process that you use. For small businesses, invoicing can be simple and somewhat primitive. Or, depending on how you manage your company, it can have several moving parts that need to work together effectively. Despite all the arguments and counter-arguments, one thing always remains certain: cash flow will determine whether you will be able to stay afloat or sink. If you wish to improve your billing process, then the information here will prove useful to you.
The moment you think about invoicing, you feel energetic as it means that you’re preparing a document that will bring payments from your clients. In the very next moment, you feel sad and disheartened when your clients don’t respond promptly to your invoices. Naturally, when you sit down to prepare invoices again, you may feel as if you want to vanish. You feel like disposing of your corporeal form.
No matter what strikes your mind or what course your emotions take, you have to acknowledge the fact that invoicing is a fundamental process required to keep your company rolling. The only reason why your clients shy away from making payments on time is that you don’t have a streamlined invoicing process. It’s the same problem that’s affecting your business negatively and damaging your psyche. Delays in payments inevitably result in severe cash flow issues. Understandably, improving your invoicing process should be of paramount importance to you.
For that purpose, this topic is a must-read for you. With the information provided below, you should receive due payments faster and you will also be able to improve your level of managing the accounts receivable department.
- Explain the terms of payment upfront: The payment terms and policies incorporated by your company will determine when and how you will receive payments. Whether you use the best small business billing app or not has nothing to do with it. Before you strike a deal with your client, you should explain your payment policies and terms to them. You must do it so that your client doesn’t fall from his/her chair when he/she receives an invoice suddenly. Experts believe that by communicating the terms and policies of payment before making a deal will allow you to get payments faster.
- Create an impression: No matter what you believe the design and layout of the invoice matters when it comes to receiving payments on time. In today’s time, clients can judge your level of professionalism from a glimpse of your invoice templates. That is why it’s crucial to impress your clients with well-designed invoices. Business experts recommend using customizable templates. For that purpose, using a professional invoicing software program or smartphone application is your only option. You have to be able to personalize the invoices for every client. Even then, you can’t refrain from maintaining simplicity. You can use as many attractive signs, fonts, logos, or anything else you like but too much of everything will work against you.
- Provide complete info: Once you take care of the design part, you need to move on to the more important details that you must include in your invoices. A properly prepared invoice should contain information such as product or service description, taxes, shipping charges (if applicable), total amount, order number, invoice number, due date, clearly defined payment terms, payment options, late payment charges, contact information, and a personalized note of gratitude.
- Be fast: The right time to send an invoice to a client is soon after delivering the product or service. Fortunately, an invoice app for small business will allow you to increase the rate at which you send invoices. It is also infinitely more convenient than preparing paper invoices. Prompt invoicing generally means receiving payments faster than usual. It also showcases your professionalism to your clients. If you have to send recurring invoices, then you should consider doing it on the same date every month to be consistent.
- Do a follow-up: Some clients won’t pay you immediately after receiving an invoice. Indeed, every business organization, whether large or small, has such clients who never pay on time. In such a situation, you should send them a reminder within a few days without hesitating. You can do it a week or a few days before the due date arrives. Apart from getting payments on time, reminders will also benefit your clients. After all, they won’t have to spend extra money on late payment. Don’t forget to maintain professionalism and courtesy through your reminders.
- Use digital modes: Since every business is going paperless these days, you must think about using a Billing Application for Small Business. Through the same, you will be able to provide online payment solutions to your clients as well. By digitizing a few processes of your business, you will improve the overall effectiveness and efficacy of your company.
To wrap it up
If you read this topic from the beginning to the end, then it should be clear to you that digitization and automation are keys to getting rid of all those issues concerning due payments
. By automating your billing process, you will be able to shift your focus on the more important tasks that require your attention. A cloud-based invoicing software program or smartphone
billing application can provide the solution to all your problems.