Whether you run a massive multinational or a corner store, invoicing is an essential process in your business. Just because this business management procedure has been around a long time doesn’t mean it’s any less relevant today. Having a streamlined process is vital to keep your business above ground. In this post, we will provide you with tips on how to enhance this important process. Read on to find out.
1. Improve Your Invoice’s Layout
If you want to sell your house, you stage it, making every detail look clean and impressive to show off its value. Your invoice template is much simpler, but it’s just as important that it has a clean, aesthetic layout and be easy to read. Your invoice will probably be the next document your client sees after buying your service, and it’s an important opportunity to showcase your professionalism.
Keep your this important document enticing with good fonts, colours, and logos, but don’t add too much of these. Keep the design simple so your clients understand what they need to do at a quick glance.
2. Establish Your Terms
To build and maintain good customer relationships and facilitate on-time payment for services rendered, it’s very important to clearly set the invoicing terms. This starts before you reach an agreement with a client, when you spell out the policies and payment terms. This way, they won’t be caught like a deer in the headlights when they receive the invoice.
Two important parts of the terms are the deadline for payment and the penalties attached to defaulting. Clients will appreciate being equipped with the nuts and bolts of the invoicing process, and making these clear will ensure you’re paid for services rendered to keep the company running.
3. Automate the Invoicing Process
Gone are the days of manual creating and sending invoices, especially for recurring ones for multiple clients. Generating it one at a time requires constantly checking details, and it’s an arduous task that today’s business owners don’t have time for.
Automating this process makes payment easier and faster. Invoicing software helps you generate and schedule recurring invoices, maintain client data, track payment status, and send reminders to clients. It also provides you with a real-time view of your accounts and ensures that the process is run efficiently.
4. Add Vital Information
Now that your invoicing process is automated and your template is ready with a professional look and feel and well-described terms, it’s time to look at the personalised information that will help facilitate payment.
Every invoice should include details such as:
- The delivery date of the goods or services
- An itemised list of charges
- Your business name
- The client’s address
- Amount owed
- Date invoice is issued
- A unique invoice reference number
- Tax information when necessary
- Date payment is due
- Late payment fees
- Shipping or delivery costs (if any)
5. Go After Payment Defaulters
Unfortunately, not every client makes payment on time. Late payments range from a few days to weeks or months after the deadline. If you’re not paid on time, it’s your responsibility to go after the defaulters. But you can maintain a good relationship by assuming the missed payment is a mistake. Send a polite, professional reminder that the deadline has lapsed and remind them of their options to pay.
Invoicing software can help you quickly add the services or products delivered, amount owed, tracking number, and unique reference number to the reminder.
6. Send Deadline Reminders
To be more proactive, send your clients reminders as the payment deadline approaches. Don’t do it daily, as this can get them annoyed and make you look unprofessional, but you can have your invoicing software automatically send them a reminder a day or a week before payment is due.
7. Use an Invoice Tracking System
Your accountant will thank you for keeping thorough records of your business’s invoicing process. Information like the date each invoice is sent and the amount of payment that’s received will be especially useful when it comes time to prepare taxes.
In a Nutshell
Optimising your invoicing process will keep the cash flowing smoothly and your business growing. Many businesses are integrating sophisticated softwares to easily create and automate invoices, send reminders, and facilitate better tracking. Get in touch with us to see how this exciting tool can spur your business’ growth.